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American Morning

America Recovers: Tax Deduction to Support NYC

Aired October 02, 2001 - 10:35   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: The attacks here on New York have certainly taken a toll on the economy, New York's in particular. The number of visitors to the city have fallen dramatically, and now in a bid to lure tourists back to the Big Apple, some lawmakers want to give tax rebates to folks who travel the New York City area.

New York Congresswomen Carolyn Maloney, a cosponsor of that legislation, joins me now here in New York to talk more about it. Good morning, to you Representative Maloney, nice to see you here.

You were part of this very large delegation yesterday. Let's start with that first of all, 109 members of Congress coming to ground zero yesterday. Overall, did you get a sense of a response or a reaction after touring the area?

REP. CAROLYN MALONEY (D), NEW YORK: I have never seen members of Congress more united and more determined to combat terrorism, to do whatever it needs to take, to make this country come back stronger and better.

Believe me, there were no Democrats or Republicans on this tour, or northerners or southerners; we were all Americans. I truly do believe, Bill, that seeing the devastation that has never existed like this before, and seeing the collateral damage, impacted on them great.

I believe that even more of them will sponsor or cosponsor the I Love New York Tax Deduction bill that will help tourism to triumph over terrorism. It will give an incentive for people to come to New York and spend time in our entertainment outlets.

The bill, for one year, would give a deduction of up to $500 per individual, $1,000 for a family, every single American would be eligible. All they have to do is come to New York and take advantage of all of the wonderful things that New York has to offer. Our Broadway shows are closing, our restaurants are empty, our lodging is vacant. We really need help.

Many people see the devastation and they are staying away from New York. We need tourism to come back to New York.

HEMMER: You are painting a pretty dim picture. My observation last week when walking through Times Square at 7:00 at night, the place was littered with tourist, which surprised me number one. But being out in Laguardia three days ago, at 9:00 at night, the place was empty. A month ago this was an airport known across the country for delays and backups. Flights were coming in 35 minutes early into Laguardia.

So, as we look at those two conflicting pictures, how do we gauge the impact here on the tourist industry?

MALONEY: We definitely to get Americans flying again. That's why we passed the $15 billion airline support system. But the numbers speak for themselves: 5 Broadway shows have closed since September 11th; the restaurant industry says that they have laid off, or will lay off roughly 300,000 people; and the hotel industry has laid off 3,000, as reported in our newspapers here in the city.

So, it's hurting the economy and small businesses. The Manhattan Chamber of Commerce and many others have come to see me, and have said that small businesses are suffering terribly, that business is off 40 to 50 percent.

So, the I Love New York Tax Deduction will give an incentive that will support our economy. Many people have said, what can I do to help? This is one they can help. Come to New York, spend money, and we will give you tax deduction, hopefully. We will be doing, along with many other measures, an economic stimulus package. I hope that this will be part of it.

HEMMER: In a broader sense, you talked about New York specifically, that is your district. Would you broaden this to other cities across America who also may be feeling similar pain?

MALONEY: Well, everything is a discussion in Congress, but no city suffered the pain and loss of New York. Devastation that is beyond belief. The loss of life that really is incredible. Never have we lost so many Americans in one day.

And the devastation and loss and -- I believe that New York deserves a special help and special commitment, since we had the special brunt of it. But certainly, I would consider help to the other crash sites and other areas that may need help.

HEMMER: Should mention you are sponsoring this bill in conjunction with another New Yorker, Republican Thomas Reynolds as well.

MALONEY: Great, bipartisan.

HEMMER: Good luck to you.

MALONEY: Thank you.

HEMMER: OK. Carolyn Maloney, thanks for talking and sharing with us today.

MALONEY: Thank you for having me.

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