DeWine's plan to expand tax-break zones is crucial

When the political dust kicked up by the debate in Congress over President Bush's tax-cut proposal settles, Republican leaders in the House will realize just how shortsighted they were in rejecting Sen. Mike DeWine's amendment to expand an important job-creation program.
And once they understand that the Ohio senator's amendment would have benefited 40 communities around the country, many of them important political battlegrounds, they will move quickly to make amends.
Thus, while we share the disappointment expressed by DeWine and Youngstown city officials, we remain confident that the amendment will be adopted sooner rather than later.
Early last week, Youngstown Mayor George M. McKelvey was giddy with joy after learning that the Republican senator had successfully added the provision, designed to expand the federal Renewal Community Zone, to the Senate's tax-cut bill. But rather than make Youngstown the only beneficiary, DeWine recognized the advantage of national applicability. So he came up with language that broadened the eligibility standards to allow more census tracts to be included in the tax-break zones. Thus, any city with a Renewal Community designation would have been able to take advantage of the change.
However, when a House-Senate conference committee met to work out differences between the chambers' versions of the tax-cut bill, DeWine's amendment and other provisions adopted by the Senate but not directly tied to tax cuts were rejected by House Republicans. Republican leaders in Congress have been at loggerheads over the president's economic stimulus package, and it is evident that it will be a while before tensions are eased.
But DeWine is determined to push ahead with his zone expansion provision. The reason: It would directly benefit the city of Youngstown.
Downtown business
To understand the significance of what the senator is trying to accomplish, it is necessary to recall a Vindicator article published in March about the uncertain future of a major downtown Youngstown business, B.J. Alan Co., a national fireworks distributor. The story quoted William Weimer, the company's general counsel, as saying that President Bruce Zoldan had told his executive team to strike a deal in six months for the expansion of the business in Youngstown, or else he would have to consider other options.
In response to that challenge, the mayor said his administration was working "very aggressively" with B.J. Alan on several fronts, but that his primary focus was to get the federal government to expand the city's Renewal Community Zone to include the area near the company's complex on Martin Luther King Boulevard that could accommodate the expansion.
McKelvey joined forces with DeWine, who along with Ohio's other senator, George V. Voinovich, had strongly backed the city's receiving the federal renewal designation. Indeed, Youngstown was the first community in the country to be so designated.
By expanding the zone, the mayor contended, Zoldan would not only have space to accommodate his business's growth, but B.J. Alan would benefit from the federal tax breaks and other incentives that are available through the renewal community program.
Had DeWine's amendment survived the conference committee, most of the tracts in the city would have come under the federal designation.
We applaud the senator for not throwing in the towel and urge this region's two representatives, Tim Ryan, D-Niles, and Ted Strickland, D-Lisbon, to join forces with him in building support on Capitol Hill for the amendment.