The Administration strongly supports House passage of H.R. 4823, which will ensure that victims of the Holocaust and their families are permanently relieved of the unfair burden of taxation of restitution payments. Restitution payments arising from tragedies inflicted on victims during the Nazi regime should not be made subject to federal taxation. The Administration urges quick action by Congress on this legislation.

The Administration looks forward to working with Congress to make permanent the other important components of The Economic Growth and Tax Relief Reconciliation Act of 2001.

Pay-As-You-Go-Scoring

Any law that would reduce receipts or increase direct spending is subject to the PAYGO requirements of the Balanced Budget and Emergency Deficit Control Act (BEA) and could cause a sequester of mandatory programs in any fiscal year through 2006. The requirement to score PAYGO costs expires on September 30, 2002, and there are no discretionary caps beyond 2002. The Administration will work with Congress to ensure fiscal discipline consistent with the President's budget and a quick return to a balanced budget. The Administration will also work with Congress to ensure that any unintended sequester of spending does not occur.