WASHINGTON, D.C. – U.S. Senator Angus King (I-Maine) today applauded the House Ways and Means Committee for its approval of the Stop Taxing Death and Disability Act – legislation inspired by the story of a Maine family. The bill approved today is the House-companion to a Senate bill Senator King introduced in April that would eliminate an unfair tax penalty levied on families whose student loans are forgiven after the death or permanent disability of their child.

            “Families shouldn’t be hit with a tax bill in the midst of such tragic and difficult circumstances. It’s not right. It’s not fair. And it’s not compassionate,” Senator King said. “That’s why I’m glad the House Ways and Means Committee moved our legislation forward, and I will continue to work with my colleagues on both sides of the aisle and in both chambers to finally put an end to this unfair tax and ensure that families across America do not have to endure the consequences of this senseless policy.”

After being moved by the story of Donald and Nora Brennen of Topsham, Maine, who lost their son, Keegan, and were hit with a $24,500 tax bill, Senator King, along with Senators Rob Portman (R-Ohio) and Chris Coons (D-Del.), introduced the Stop Taxing Death and Disability Act in April. In May, U.S. Representatives Ron Kind (D-Wisc.-3), Ryan Costello (R-Penn.-6), and Chellie Pingree (D-Maine-1) followed suit by introducing a companion bill in the House. Today, the House Committee on Ways and Means overwhelmingly approved the bill, sending it to the full House for consideration.

While the federal government forgives certain federal student loans in the case of the death or disability of the borrower, the Internal Revenue Service (IRS) still levies an income tax on this cancelled debt which can result in tens of thousands of dollars in immediate tax liability. The Stop Taxing Death and Disability Act would eliminate this unfair tax, which simply replaces one financial burden with another and serves no public policy purpose. The tax on discharged loans is not only unfair, but it also remains a key barrier that prevents the Department of Education from streamlining the loan forgiveness process. For more information on the legislation, click HERE.

Senators King, Portman, and Coons also penned an op-ed for TIME on their legislation that can be read by clicking HERE.

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