A rally in support of downtown small businesses was the background for the announcement that US Rep. Jerrold Nadler (D-NY) is introducing legislation that would save from taxation grants given to those small businesses. His legislation, “The September 11th Aid Preservation Act of 2002," would make tax-exempt all grants given to downtown small businesses, non-profits, and individuals as part of the Community Development Block Grant (CDBG) program money given to the state for economic recovery efforts after 9/11.
“While the CDBG funds could never make these individuals and businesses whole after the incalculable losses they suffered, these funds are an important first step,” said Rep. Nadler. “But now, according to recent press reports, much of this money may now be subject to federal taxation.”
“Already on the precipice of financial ruin, to place further economic demands on their budgets would simply be cruel. Furthermore, such a policy would scare away others considering a move to lower Manhattan,” he added.
Shortly after the devastating terrorist attacks in New York, Congress moved quickly to ease the economic suffering of businesses and residents in lower Manhattan. $2.7 billion was appropriated through the Community Development Block Grant program specifically to assist residents and businesses in lower Manhattan through a variety of grant programs. Much of that money is still taxable under law. However, if Rep. Nadler’s legislation passed, those funds would be exempt.
Rep. Nadler made the announcement of his legislation at a rally at City Hall in support of downtown small business. He was joined by Council Member Alan Gerson and Council Member Domenic Recchia, among other local elected officials.
Rep. Nadler has served in Congress since 1992. He represents the 8th Congressional District of New York, which includes parts of Manhattan and Brooklyn, including the World Trade Center site and the businesses which would benefit from his new legislation.
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