Roosevelt Wallace - Page 16




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          Rehabilitation Activities Fund are nested within a series of                
          provisions dealing with benefits.  There is a canon of                      
          construction, noscitur a sociis (Latin: “it is known by its                 
          associates”), holding that the meaning of an unclear word or                
          phrase should be determined by the words immediately surrounding            
          it.  Black’s Law Dictionary 1087 (8th ed. 2004); see also, e.g.,            
          Jarecki v. G.D. Searle & Co., 367 U.S. 303, 307 (1961).  While              
          Congress has failed to tell us whether distributions from the VA            
          Special Therapeutic and Rehabilitation Activities Fund are to be            
          considered benefits, the placement of section 1718 in the midst             
          of so many benefit provisions supports the inference that such              
          distributions are to be considered benefits.  Contextually, the             
          distributions are benefits.                                                 
               E.  History of 38 U.S.C. Section 5301(a)                               
               The history of a statute may be helpful in resolving                   
          ambiguities therein.  E.g., Anderson v. Commissioner, 123 T.C.              
          219, 233 (2004), affd. 137 Fed. Appx. 373 (1st Cir. 2005).                  
               Section 5301 (2000) of title 38 both limits the                        
          assignability of veterans’ benefits and exempts those benefits              
          from taxation.  While the provision has deep roots,5 its                    

               5  The tax exemption for VA benefits originated as an                  
          amendment to the Bureau of War Risk Insurance Act, which,                   
          beginning in 1917, provided certain benefits for members of the             
          Armed Forces.  See Act of Oct. 6, 1917, ch. 105, sec. 311, 40               
          Stat. 408.  The initial amendment, which provided an exemption              
          from tax for certain death and disability benefits, was later               
                                                             (continued...)           





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