13. Testimony of Chuck Ludlam and Paula Hirschoff on S. 732: The Peace Corps Volunteer Empowerment Act: Homeowners Capital Gains Exclusion



Another major disincentive to service for older Volunteers and for staff arises from the current tax treatment of capital gains on the sale of a principal residence. The current rule provides a $250,000-$500,000 exclusion of gains from taxation as long as the taxpayer has resided in the home for 2 of the past 5 years. Volunteers or staff members might well serve for 3 years and return to find that they are not eligible for this exclusion. This is an issue that has most relevance to older Volunteers; younger Volunteers do not often own homes. Military and Foreign Service personnel have secured a tolling of the 2 of 5 rule during such time as they serve abroad.

13. Testimony of Chuck Ludlam and Paula Hirschoff on S. 732: The Peace Corps Volunteer Empowerment Act: Homeowners Capital Gains Exclusion

Homeowners Capital Gains Exclusion

Another major disincentive to service for older Volunteers and for staff arises from the current tax treatment of capital gains on the sale of a principal residence. The current rule provides a $250,000-$500,000 exclusion of gains from taxation as long as the taxpayer has resided in the home for 2 of the past 5 years. Volunteers or staff members might well serve for 3 years and return to find that they are not eligible for this exclusion. This is an issue that has most relevance to older Volunteers; younger Volunteers do not often own homes. Military and Foreign Service personnel have secured a tolling of the 2 of 5 rule during such time as they serve abroad.

When the legislation embodying this tolling provision was first proposed, it provided a tolling of the 2 of 5 rule for Peace Corps Volunteers and staff while they serve. Chuck, then serving on Senator Lieberman's staff, saw that the corollary Senate bill did not include Peace Corps Volunteers and staff in the tolling. He went to the Peace Corps Congressional Liaison on six occasions to ask for cooperation with him to include Peace Corps in the Senate bill or at least ensure that the House provision prevailed in the conference. She showed no interest in his effort and we lost the inclusion of the Peace Corps in the final bill. When Chuck later asked her if the Peace Corps would help resurrect this provision, she refused. In these interactions, the Peace Corps demonstrated that it had little interest in removing disincentives for service by older Volunteers. Appendix E has a detailed account of this issue and the Peace Corps' indifferent response.

In late 2006, the Congress extended the tolling provision to "intelligence officers" while they serve abroad. Again the Peace Corps squandered an opportunity to include Volunteers and Peace Corps staff. See the Tax Relief and Health Care Act of 2006, H.R. 6111, Public Law 109-432, Section 417 (December 22, 2006).

Section 304 states that the Department of Treasury should propose and the Congress should enact legislation for Peace Corps Volunteers and staff similar to that enacted as Section 101 of the H.R. 3365, the Military Family Tax Relief Act of 2003 (P. L. 108-121) for military and foreign service personnel (and now intelligence officers).

If the Peace Corps had listened back in 2003 when the legislation was pending in the Congress, or acted in late 2006 when it was pending again, this legislative command would be unnecessary.

The NPCA survey found strong support for this provision, with 90% agreeing that "Congress enact legislation to provide Peace Corps Volunteers with treatment similar to members of the uniformed services and foreign service-related benefits on capital gains taxes for the sale of a principal residence." Only 6% disagreed. Among the written comments were the following:

I have long believed the PCVs should have some of the same benefits as members of the uniformed and Foreign Service. We also serve our country and government. The lack of benefits for PCVs, in my opinion, reduces the number of people from low-income and working class backgrounds who can join the PC. RPCV, Uzbekistan, 2003-2005

If the Peace Corps is listening to the Volunteers, it will support this provision.

This is one section from the testimony read into the record on the Peace Corps Volunteer Empowerment Act by Chuck Ludlam and Paula Hirschoff, two RPCVs who are now serving their second tour in Senegal. The rest of the sections can be found by following this link. Their entire report in MS Word format can be downloaded by following this link.

Links to Related Topics (Tags):

Headlines: July, 2007; Congress; Legislation; Speaking Out; Peace Corps Library; Peace Corps Countries of Service; Peace Corps History; Peace Corps Message Board; Recent Peace Corps News

When this story was posted in July 2007, this was on the front page of PCOL:




Peace Corps Online The Independent News Forum serving Returned Peace Corps Volunteers

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Senator Dodd's Peace Corps Hearings Read PCOL's executive summary of Senator Chris Dodd's hearings on July 25 on the Peace Corps Volunteer Empowerment Act and why Peace Corps Director Ron Tschetter does not believe the bill would contribute to an improved Peace Corps while four other RPCV witnesses do. Highlights of the hearings included Dodd's questioning of Tschetter on political meetings at Peace Corps Headquarters and the Inspector General's testimony on the re-opening of the Walter Poirier III investigation.

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Dodd issues call for National Service Standing on the steps of the Nashua City Hall where JFK kicked off his campaign in 1960, Presidential Candidate Chris Dodd issued a call for National Service. "Like thousands of others, I heard President Kennedy's words and a short time later joined the Peace Corps." Dodd said his goal is to see 40 million people volunteering in some form or another by 2020. "We have an appetite for service. We like to be asked to roll up our sleeves and make a contribution," he said. "We haven't been asked in a long time."

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July 9, 2007: This Month's Top Stories O'Hanlon says "soft partition" occurring in Iraq 9 Jul Eric R. Green writes on coming oil crisis 8 Jul Why Dodd joined the Peace Corps 5 Jul Jim Doyle positioned for third term 5 Jul Michael Adlerstein to direct UN Master Plan 3 Jul Shalala says Veterans report will be solution driven 1 Jul Blackwill says: No process will make up for stupidity 30 Jun Allan Reed creates a Diaspora Skills Transfer Program 29 Jun State Dept apology ends hold on Green nomination 28 Jun Call for stories to celebrate PC 50th Anniversary 25 Jun Michael Shereikis is singer and guitarist for Chopteeth 25 Jun Christopher R. Hill Visits North Korea 22 Jun Tschetter at JFK Bust Unveiling Ceremony 21 Jun Kiribati too risky for PCVs 17 Jun James Rupert writes: US calls for free Pakistani elections 17 Jun Colin Cowherd says PCVs are losers 7 Jun Tony Hall Warns of Food Shortages in North Korea 7 Jun Youth Theatre performs Spencer Smith's "Voices from Chernobyl" 7 Jun Ifugao names forest park after Julia Campbell 6 Jun Anissa Paulsen assembles "The Many Colors of Islam" 5 Jun Obituary for Nepal RPCV Loret Miller Ruppe 2 Jun Forty PCVS to arrive in Ethiopia 2 Jun

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Public diplomacy rests on sound public policy When President Kennedy spoke of "a long twilight struggle," and challenged the country to "ask not," he signaled that the Cold War was the challenge and framework defining US foreign policy. The current challenge is not a struggle against a totalitarian foe. It is not a battle against an enemy called "Islamofascism." From these false assumptions flow false choices, including the false choice between law enforcement and war. Instead, law enforcement and military force both must be essential instruments, along with diplomacy, including public diplomacy. But public diplomacy rests on policy, and to begin with, the policy must be sound. Read more.

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Ambassador revokes clearance for PC Director A post made on PCOL from volunteers in Tanzania alleges that Ambassador Retzer has acted improperly in revoking the country clearance of Country Director Christine Djondo. A statement from Peace Corps' Press Office says that the Peace Corps strongly disagrees with the ambassador’s decision. On June 8 the White House announced that Retzer is being replaced as Ambassador. Latest: Senator Dodd has placed a hold on Mark Green's nomination to be Ambassador to Tanzania.

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June 1, 2007: This Month's Top Stories Returned Volunteers and Staff honor Warren Wiggins 15 May Tom Seligman curates "Art of Being Tuareg" 26 May PCV Marilyn Foss dies in China 25 May Poet Susan Rich writes: The Women of Kismayo 22 May Christopher Hill considers visit to North Korea 18 May Peter Hessler talks about time in Fuling as PCV 18 May Murder charges filed in death of PCV Julia Campbell 17 May David Pitts claims JFK offered PC to Lem Billings 16 May Niki Tsongas announces candidacy for Congress 16 May James Rupert writes: Pakistanis talk of Musharraf's departure 16 May Chris Matthews writes: Jerry Falwell's Political Legacy 15 May Ron Tschetter visits volunteers in Botswana 14 May Which assignment to take? Africa, Europe, or Central Asia 14 May Willy Volk writes: New way to keep mosquitoes at bay 14 May Jim Walsh takes special interest in Nepal 13 May NPCA offers podcasts of social entrepreneurs 10 May Gaddi Vasquez showcases food aid work in Central America 10 May Donna Tabor dreamed up Cafe Chavalos 8 May Tom Bissell writing book about Jesus' 13 Apostles 8 May Jody Olsen praises PCV blogging 7 May PC responds to missing volunteers in 2001 and 2007 2 May

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Peace Corps Funnies A PCV writing home? Our editor hard at work? Take a look at our Peace Corps Funnies and Peace Corps Cartoons and see why Peace Corps Volunteers say that sometimes a touch of levity can be one of the best ways of dealing with frustrations in the field. Read what RPCVs say about the lighter side of life in the Peace Corps and see why irreverent observations can often contain more than a grain of truth. We'll supply the photos. You supply the captions.

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PCOL serves half million PCOL's readership for April exceeded 525,000 visitors - a 50% increase over last year. This year also saw the advent of a new web site: Peace Corps News that together with the Peace Corps Library and History of the Peace Corps serve 17,000 RPCVs, Staff, and Friends of the Peace Corps every day. Thanks for making PCOL your source of news for the Peace Corps community. Read more.

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May 2, 2007: This Month's Top Stories Tschetter flew to Manila to support search for missing PCV 15 Apr Michael O'Hanlon writes: A ruthless foe 24 Apr Dodd calls for 'surge of diplomacy' on Iraq 13 Apr Tony Hall works with Opportunity International 22 Apr Mark Gearan Calls for Service, engaged constituency 20 Apr Timothy Obert sentenced in molestation case 20 Apr Moyers indicts news media on Iraq reporting 19 Apr Chris Matthews to moderate May 3 GOP debates 18 Apr Garamendi votes to kill LNG terminal 10 Apr Scheper-Hughes receives William Sloan Coffin Award 7 Apr Petri outraged at Student Loan Corruption 6 Apr Dodd wants to expand Peace Corps to 100,000 4 Apr John Sherman's opera "Biafra" now on web 2 Apr Peter Navarro writes "The Coming China Wars" 30 Mar Carl Pope writes: 2% solution for global warming 28 Mar Philippe Newlin lectures on wine 28 Mar DRI launches program to improve Healthcare in Ghana 26 Mar Gabriela Lena Frank's Compadrazgo debuts in Columbus 26 Mar Reed Hastings appointed to Microsoft Board of Directors 26 Mar Shays supports National Public Service Academy 23 Mar Margaret Krome writes: Peace vigil appropriate response 21 Mar Al Kamen writes: Clinton fired Prosecutors too 21 Mar

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Suspect confesses in murder of PCV Search parties in the Philippines discovered the body of Peace Corps Volunteer Julia Campbell near Barangay Batad, Banaue town on April 17. Director Tschetter expressed his sorrow at learning the news. “Julia was a proud member of the Peace Corps family, and she contributed greatly to the lives of Filipino citizens in Donsol, Sorsogon, where she served,” he said. Latest: Suspect Juan Duntugan admits to killing Campbell. Leave your thoughts and condolences .

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Warren Wiggins: Architect of the Peace Corps Warren Wiggins, who died at 84 on April 13, became one of the architects of the Peace Corps in 1961 when his paper, "A Towering Task," landed in the lap of Sargent Shriver, just as Shriver was trying to figure out how to turn the Peace Corps into a working federal department. Shriver was electrified by the treatise, which urged the agency to act boldly. Read Mr. Wiggins' obituary and biography, take an opportunity to read the original document that shaped the Peace Corps' mission, and read John Coyne's special issue commemorating "A Towering Task."

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The Peace Corps Library The Peace Corps Library is now available online with over 40,000 index entries in 500 categories. Looking for a Returned Volunteer? Check our RPCV Directory or leave a message on our Bulletin Board. New: Sign up to receive our free Monthly Magazine by email, research the History of the Peace Corps, or sign up for a daily news summary of Peace Corps stories. FAQ: Visit our FAQ for more information about PCOL.

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Chris Dodd's Vision for the Peace Corps Senator Chris Dodd (RPCV Dominican Republic) spoke at the ceremony for this year's Shriver Award and elaborated on issues he raised at Ron Tschetter's hearings. Dodd plans to introduce legislation that may include: setting aside a portion of Peace Corps' budget as seed money for demonstration projects and third goal activities (after adjusting the annual budget upward to accommodate the added expense), more volunteer input into Peace Corps operations, removing medical, healthcare and tax impediments that discourage older volunteers, providing more transparency in the medical screening and appeals process, a more comprehensive health safety net for recently-returned volunteers, and authorizing volunteers to accept, under certain circumstances, private donations to support their development projects. He plans to circulate draft legislation for review to members of the Peace Corps community and welcomes RPCV comments.

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He served with honor One year ago, Staff Sgt. Robert J. Paul (RPCV Kenya) carried on an ongoing dialog on this website on the military and the peace corps and his role as a member of a Civil Affairs Team in Iraq and Afghanistan. We have just received a report that Sargeant Paul has been killed by a car bomb in Kabul. Words cannot express our feeling of loss for this tremendous injury to the entire RPCV community. Most of us didn't know him personally but we knew him from his words. Our thoughts go out to his family and friends. He was one of ours and he served with honor.

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