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Flood grants are more headache than help
The Gazette Opinion Staff
Aug. 8, 2010 12:30 am
The city of Cedar Rapids is awarding $10,000 grants to help flood survivors. Sounds great.
The reality is, the grant goes to the Small Business Administration. Remember, we still have our original mortgages, but come tax time we're responsible for the $3,300 tax. This is a good deal for those of us who can swing it. What about those who can't access an extra $3,300?
Why can't $6,700 go to the SBA and $3,300 to the IRS? If you accept the grant and can't pay the tax, does the IRS penalize you at 17 percent interest? Then what?
Why are we taxed on our self-imposed local-option sales tax, raised by us, for us, anyway?
I wrote Sen. Chuck Grassley, Rep. Dave Loebsack and City Council member Justin Shields. So far, only Grassley's office responded, with a next-day phone call and a promise to look into it. I've already received and sent paperwork to him.
To the flood survivors too poor to accept help, I guess you'll just have to suck water.
Donald A. King III
Cedar Rapids
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