WASHINGTON, DC—Today, Representatives Jim McGovern (MA-02) and Jamie Raskin (MD-08) introduced the Tax Relief for Victims of Crimes, Scams, and Disasters Act, legislation to reinstate a tax deduction previously available to victims of scams, thefts, accidents and other personal casualty losses. After the 2017 Trump tax cuts repealed a critical tax deduction previously available to taxpayers suffering personal casualty losses, reporting has revealed a pattern of devastated Americans saddled with exorbitant tax liabilities after losing money through scams, frauds, thefts and similar adverse events.
“Crumbling foundations have caused massive financial and emotional burden for homeowners across Central and Western Massachusetts,” said Rep. McGovern. “I’ve visited many homes where families were suddenly left with exorbitant costs to ensure their home is safe. This legislation would provide immediate tax relief for these homeowners, as well as victims of scams and others suffering losses at no fault of their own.”
“Our government should work as an instrument for the common good—protecting Americans against robbery, theft and on-line scams—not compounding victims’ hardship with you’re-on-your-own-jack tax laws,” said Rep. Raskin. “Instead, to this day, former president Donald Trump and MAGA Republicans’ policies are ripping off fraud victims while scammers rake in billions of dollars every year. Our government can act swiftly to relieve Americans reeling from personal casualty losses and the perverse harmful effects of the plutocratic Trump tax cuts and their sinister little tricks.”
Reps. McGovern and Raskin’s bill would bring relief to taxpayers experiencing hardships by reinstating the tax deduction for personal casualty losses that was available prior to the 2017 Tax Cuts and Jobs Act. Crucially, the bill would allow victims who suffered losses after passage of the 2017 Trump tax law to claim the deduction on prior year’s taxes.