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WASHINGTON, D.C. -- Sen. Sherrod Brown (D-OH) called for swift passage of a bipartisan tax deal that includes tax relief for East Palestine following the derailment, during a news conference call on Wednesday.
The plan would make any derailment assistance received by residents from Norfolk Southern tax exempt.
"This would prevent a surprise bill for East Palestine residents," Brown said. "The payouts from Norfolk Southern were meant to make the community whole again. They shouldn't be getting a tax bill for it."
East Palestine councilwoman Linda May along with CEO of the Ohio Chamber of Commerce Steve Stivers and President and CEO of the Ohio Business Roundtable Pat Tiberi joined Brown on the call.
Aside from making derailment relief non-taxable, the plan, which will be introduced as the Tax Relief for American Families and Workers Act of 2024, will cut taxes for many Ohio parents by expanding the Child Tax Credit, support Ohio manufacturers by rewarding domestic investment in research and development and help make housing more affordable by expanding the Low Income Housing Tax Credit. Brown negotiated the deal with Senate Finance Committee Chairman Ron Wyden (D-OR) and House Ways and Means Committee Chairman Jason Smith (R-MO).
Brown is hopeful the bill can be passed by the start of the filing season on Jan. 29 and said tax relief was one of many obligations such as enhanced rail safety owed to East Palestine in the wake of the disaster.
"My job is to pass legislation like the Railway Safety Act against the power of a strong railroad lobby and to help people of East Palestine return to a normalcy," Brown said.
May said the bipartisan tax deal shows a willingness of Washington to work together to help East Palestine recover from the events of Feb. 3.
"It's very impressive to see people come together from across party lines to get this done," she said. "Working together is what it's going to take to help rebuild East Palestine and move us forward."
The Village of East Palestine and the State of Ohio have already taken measures to ensure any derailment assistance is nontaxable.
Ohio made the first move in July when State Rep. Monica Robb Blasdel (R-Columbiana County) secured a deduction for taxpayers impacted by the East Palestine derailment from their state income tax and rail safety measures. Robb Blasdel pushed for these amendments into the state budget, which was approved by the General Assembly and signed into law in July.
East Palestine followed suit in September by passing an ordinance to make sure no one is required to pay village income taxes on any payments they receive for derailment-related expenses or losses.
selverd@mojonews.com