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NEW YORK, NY: Today, Nancy Ploeger, President of the Manhattan Chamber of Commerce, announced the start of a national campaign to seek the support of Chambers of Commerce around the country in opposing taxation on 9/11 aid and urging federal elected officials to reverse the wrongheaded, harmful IRS decision.
At the announcement, Congresswoman Carolyn Maloney (NY) spoke out against the IRS decision to tax 9/11 aid, saying the IRS decision was against the intent of the grants, which were meant to help small businesses near Ground Zero recover from massive losses related to the disaster and help them recommit to lower Manhattan. Maloney said, "You don't send aid to people recovering from a terrorist attack with one hand, and then take it back with another through taxes. These businesses accepted this aid as a last resort, used it to survive, and only later found out it would be taxed. It's totally wrong. America supported New Yorkers in need immediately following the disaster, and we still see bumper stickers that say 'never forget,' but it seems like Washington has a hard time remembering some of those who are still actually struggling because of this disaster." Nancy Ploeger said, "The neighborhood stores, restaurants, and other small businesses affected by 9/11 are being hurt again by the decision to tax 9/11 aid. We want this IRS decision reversed and we think the support of the nation's Chambers of Commerce will help us advance this goal. It's just the right thing to do." Meyer Feig, President of the World Trade Center Tenants Association and Founder of the Downtown Business Network, said, "As one of the many businesses that needed some level of help after the disaster, and learned later that it would be taxed, I can say it would be a great relief to find out that the tax was repealed. Many small businesses are still struggling in lower Manhattan, searching for a way to stay afloat and still repay these unexpected taxes. We need a better solution." , President of the World Trade Center Tenants Association and Founder of the Downtown Business Network, said, "As one of the many businesses that needed some level of help after the disaster, and learned later that it would be taxed, I can say it would be a great relief to find out that the tax was repealed. Many small businesses are still struggling in lower Manhattan, searching for a way to stay afloat and still repay these unexpected taxes. We need a better solution."BACKGROUND: At Congresswoman Maloney's request, the Congressional Joint Committee on Taxation recently estimated the impacts of the decision by the IRS to tax 9/11 grants, finding that it will mean the return of approximately $268 million in 9/11 aid to the federal government, from the families and small businesses in lower-Manhattan still struggling to recover. At Congresswoman Maloney's request, the Congressional Joint Committee on Taxation recently estimated the impacts of the decision by the IRS to tax 9/11 grants, finding that it will mean the return of approximately $268 million in 9/11 aid to the federal government, from the families and small businesses in lower-Manhattan still struggling to recover.Maloney, along with others in the New York delegation, has written the IRS, the Secretary of Treasury, the President, Speaker Hastert, and the leadership of the Senate, calling for a reversal of this decision. Maloney has introduced bipartisan legislation on the issue (H.R. 1620), the Ways and Means Committee is aware of the problem, and the Congressional Research Service has done a memo on it. Maloney also fought to have the House Rules Committee allow consideration of an amendment to HR 1308, the Increased Child Tax Credit Bill. In early October, House Republican leaders blocked an effort by Congresswoman Maloney and Congressman Jerrold Nadler (NY) to reverse the IRS decision to tax 9/11 aid. When Maloney offered an amendment to the Transportation-Treasury Appropriations Bill to stop the IRS from collecting taxes on grants received by individuals and businesses in Lower Manhattan after the terrorist attacks of September 11, 2001, the Republican Chair of the Committee, Rep. Ernest Istook (OK) blocked the effort by raising a procedural point of order against it. When asked to remove his point of order, Istook did not respond, and no one answered Maloney's question about any other way to prevent the taxation of 9/11 aid. Excerpts from Maloney's statement in defense of her most recent amendment follows, with web links at the end of this release including a time line of events, the IRS decision to tax these grants, and the Joint Committee on Taxation estimate of potential costs to 9/11 victims.
A Complete Set of Background Material On the 9/11 Tax issue, including a timeline, legislation, letters on the subject is available at: http://maloney.house.gov/documents/olddocs/Sept11/Tax.html |
