Snow Responds to Gaming Industry's Concerns About Nondiscrimination in Gulf Coast Revitalization

Thank you for your letter regarding tax relief for companies whose businesses were impacted by Hurricane Katrina. In your letter, you requested that the Treasury Department support tax relief provisions that apply across the board and do not discriminate against particular industries.

On December 21, 2005, the President signed into law the Gulf Opportunity Zone Act (the "GO Zone Act") that will provide critical assistance for the rebuilding and recovery efforts in the Gulf region. As you mentioned in your letter, in testimony before the Senate Finance Committee on October 6, 2005, I noted that the Administration's proposals for tax relief in the Gulf region did not discriminate against particular businesses or industries. The objective of the Administration's proposals was to help devastated local economies by providing tax relief to all businesses and entrepreneurs who invest in the Gulf region and create jobs. Neutral treatment would ensure that market forces, rather than the government, determine the nature and amount of business investment.

Although, unlike the Administration's proposals, the GO Zone Act limits the availability of certain tax relief, we will continue to work with Congress to ensure that the tax laws are focused on encouraging business investment without excluding particular businesses or industries.

Thank you for sharing your views on this important issue.