H.R.1179 - Chiquita Canyon Tax Relief Act (119th Congress)
Summary
H.R.1179, the Chiquita Canyon Tax Relief Act, aims to exclude certain relief payments from gross income for victims of the Chiquita Canyon elevated temperature landfill event. This bill specifically targets payments received as compensation for losses, damages, expenses, relocation, suffering, or inconvenience resulting from the landfill event. The relief applies to payments from federal, state, or local government agencies, Waste Connections, Inc., or related entities, effective for amounts received on or after March 1, 2024.
Expected Effects
The bill, if enacted, would reduce the tax burden on individuals who received compensation due to the Chiquita Canyon landfill event. This means that the relief payments would not be subject to federal income tax, providing direct financial relief to affected residents. This could free up funds for recovery and rebuilding efforts.
Potential Benefits
- Provides tax relief to victims of the Chiquita Canyon landfill event.
- Ensures that compensation received for losses and suffering is not subject to federal income tax.
- Offers financial assistance to help residents recover from the disaster.
- Simplifies the tax filing process for affected individuals by excluding these payments from gross income.
- Could encourage more rapid and effective distribution of relief funds, knowing they won't be taxed.
Potential Disadvantages
- May create a precedent for excluding specific disaster relief payments from taxation, potentially complicating future tax policy.
- Could be perceived as benefiting a specific group of individuals, potentially leading to calls for similar tax relief in other disaster situations.
- The financial impact on the federal government is likely minimal, but it does represent a small reduction in tax revenue.
- The definition of 'Chiquita Canyon elevated temperature landfill event payments' could be subject to interpretation, potentially leading to disputes.
- May not address the underlying issues that led to the landfill event or prevent similar incidents in the future.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution, as it seeks to provide relief to individuals affected by a specific disaster. While the Constitution does not explicitly address tax exemptions for disaster relief, Congress has broad authority to legislate on matters related to taxation and the general welfare of the citizens. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).