The Flurry of Tax Law Changes Following the 2005 Hurricanes: A Strategy for More Predictable and Equitable Tax Treatment of Victims
Patrick E. Tolan Jr.
Barry University - Dwayne O. Andreas School of Law
Brooklyn Law Review, Vol. 72, p. 799, 2007
Although experts had predicted the increased hurricane activity of the past two years, the United States response to the 2005 hurricanes was anything but adequate. In the months following the most destructive hurricane season the world has ever known, virtually every aspect of the United States response has been scrutinized. This article examines the tax relief measures that were triggered by Hurricane Katrina and the later Hurricanes of 2005. Unfortunately, the flurry of activity resulted in disparate relief for six different classes of casualty victims.
The article begins by putting emergency tax relief in perspective. It then examines the extensive tax aftermath from Hurricanes Katrina, Rita and Wilma. The Gulf Opportunity Zone (GO Zone) concept is examined in detail. The article then argues that certain relief measures ought to be expanded and enhanced for all future victims while others ought to be abandoned. The complimentary goals of taxpayer equity and a tax code that is sufficiently predictable to foster desired taxpayer behavior frame the analysis.
Both procedural and substantive changes to the tax code are proposed. Changes beneficial to individual taxpayers, as well as small businesses, are emphasized. The author advocates permanent changes to the tax code with incentives to motivate precautionary financial and tax planning. Tax relief is proposed that would compliment insurance and other federal emergency relief measures to allow victims to rebuild their economic lives.
Number of Pages in PDF File: 72
Keywords: hurricane, katrina, KETRA, GO Zone, tax relief, disaster
JEL Classification: K10, K30, K34Accepted Paper Series
Date posted: September 26, 2006
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo5 in 0.359 seconds