NEW YORK - Sen. Chuck Schumer (D-NY) proposed a bill Monday to give tax breaks to smaller investors who were victims of Bernie Madoff's Ponzi scheme.

Schumer says the bill would provide some relief to middle class residents who lost money investing with Madoff. Larger investment firms who suffered losses qualified under existing laws for relief.

The bill would not only give small investors tax breaks, but they would be able to claim losses for the past six years, as well as the next 20 years. The bill would also allow a waiver of the 10 percent penalty for early withdrawal from retirement accounts.