TVA Update: News Sentinel Article on Coal Ash Disaster Raises a Question...

An Open Blog Post to Senators Boxer and Alexander:

FACT: TVA is a government entity.
FACT: The EPA is a government entity.
FACT: The EPA allowed TVA waivers they would not have allowed publicly-held utilities.
FACT: The Supreme Court ruled the EPA cannot bring suit against TVA because of their government status.
FACT: The EPA has ZERO regulatory authority over TVA.
FACT: The IRS is a government entity.
FACT: Restitution has begun for the people devastated by the Kingston Steam Plant coal ash disaster.

QUESTION: Is it now time for the IRS to step in and add further insult to injury?

I ask that the officials in charge of the TVA oversight committee step up and become the "Protector of the People."

According to an article in the Knoxville News Sentinel, TVA is quietly writing checks to the people impacted by the collapse. What is not being said is that a portion of this restitution appears to be taxable, by approximately a third.

There are two checks being written: one for the appraised value of the home, and one for "inconvenience, relocation costs and other expenses."

(No mention of medical expenses, but then, TVA denies knowledge of people getting sick).

The people of Harriman, Tennessee, who have been damaged by the coal ash disaster (physically, financially, emotionally), need bi-partisan legislation to ease their tax burden.

TVA said they would make the people "whole" and "happy." And then, they, apparently, set them up to be taxed...out the ying-yang.

At this point, no one really knows for sure how much of that restitution is taxable.

I would assume that if you've lived in your home for 2 years, the check for the appraised value of your home would be safe from capital gains.

However, the second check for relocation and "inconvenience" appears to be fair game.

If so, that's entirely inappropriate.

TVA is a tax-exempt government entity (and why they continue to be a government entity, I haven't a clue). How fair is it that a government entity can do the damage and then set folks up for another government entity to come in and tax them on the compensation?

TVA slaps them on one cheek and then the IRS can come in slap them on the other?

How wrong is THAT?!

At the very LEAST, there should be three checks: one for the appraised value of the home, one for relocation expenses, and one for the inconvenience.

It's not that these folks mind paying their fair share of taxes, but you can't tell these people you're going to make them 'whole' and 'happy' and then say, eh, you know what, we want a third of that back.

Grossly inappropriate.

So, for all of you reading this, write your representatives. TODAY. Both local and state. Tell them you want something done for these folks. It just isn't right that the government be able to giveth in one hand and taxeth away in the other.