Bill Text: NJ SR72 | 2012-2013 | Regular Session | Introduced
Bill Title: Urges Congress and President to enact H.R.5044, the "Andrew P. Carpenter Tax Act."
Spectrum: Bipartisan Bill
Status: (Passed) 2012-12-21 - Filed with Secretary of State [SR72 Detail]
Download: New_Jersey-2012-SR72-Introduced.html
Sponsored by:
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
Senator JAMES BEACH
District 6 (Burlington and Camden)
SYNOPSIS
Urges Congress and President to enact H.R.5044, the "Andrew P. Carpenter Tax Act."
CURRENT VERSION OF TEXT
As introduced.
A Senate Resolution urging Congress and the President of the United States to enact the "Andrew P. Carpenter Tax Act," H.R.5044.
Whereas, In 2008, prior to enlisting in the United States Marine Corps, Andrew Carpenter borrowed $20,000 in federal and private student loans to help pay for his college education, with his parents co-signing the loans; and
Whereas, As a member of the 26th Marine Expeditionary Unit, Lance Corporal Carpenter was deployed in Afghanistan, where he was shot and died of his wounds on February 19, 2011; and
Whereas, Upon the death of Lance Corporal Carpenter, the federal student loans were forgiven, since current federal law allows student loans backed by the federal government to be forgiven for deceased military veterans; and
Whereas, Private lending companies have the option to forgive loans and Lance Corporal Carpenter's private lender forgave his remaining private loans; and
Whereas, When student loans and other types of debt are forgiven, the Internal Revenue Service (IRS) considers the amount forgiven to be taxable income, and therefore Lance Corporal Carpenter's parents, as co-signers of his student loans, were subjected to income tax on the amount forgiven, which totaled $28,000 with interest; and
Whereas, Each parent who loses a child bears an emotional pain that few can understand and should not have the additional burden of assuming debt, especially when that child has made the ultimate sacrifice in the defense of his country as a member of the United States military; and
Whereas, H.R.5044, known as the "Andrew P. Carpenter Tax Act," was introduced on April 27, 2012, to exclude student loan amounts forgiven from gross income, thereby preventing the IRS from collecting income taxes on any amount of loan forgiveness for deceased military veterans, and would apply retroactively to October 7, 2001, the start of Operation Enduring Freedom; now, therefore,
Be It Resolved by the Senate of the State of New Jersey:
1. The United States Congress and the President of the United States are respectfully urged to enact H.R.5044, the "Andrew P. Carpenter Tax Act," to exclude forgiven student loan amounts from gross income for deceased military veterans, retroactive to October 7, 2001, the start of Operation Enduring Freedom.
2. Duly authenticated copies of this resolution, signed by the President of the Senate and attested by the Secretary of the Senate, shall be transmitted to the President of the United States, the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and to every member of Congress elected from this State.
STATEMENT
Prior to enlisting in the United States Marine Corps, Andrew Carpenter obtained $20,000 in federal and private student loans to help pay for his college education in 2008, with his parents co-signing the student loans. Lance Corporal Carpenter was later deployed in Afghanistan, where he was shot and died of his wounds on February 19, 2011.
Currently, federal law permits student loans backed by the federal government, such as Stafford loans, to be forgiven for deceased military veterans. Private lending companies have the option of forgiving student loans for deceased military veterans. Lance Corporal Carpenter's federal and private student loans were both forgiven. However, when student loans and other types of debt are forgiven, the Internal Revenue Service considers such loan forgiveness as part of gross income and subject to income tax. Because Lance Corporal Carpenter's parents were co-signers of the loans, they now had to pay income tax on the amount forgiven, totaling $28,000 including interest.
H.R.5044, introduced on April 27, 2012, would exclude the amount of student loans forgiven from gross income for deceased military veterans. Co-signers of student loans of deceased military veterans are already grieving over the loss of a loved one, and should not face an additional burden. Accordingly, this Senate resolution urges the United States Congress and the President of the United States to enact H.R.5044.
