[Congressional Record Volume 143, Number 125 (Thursday, September 18, 1997)]
[Extensions of Remarks]
[Page E1795]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    THE CHARITABLE GIVING RELIEF ACT

                                 ______
                                 

                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                      Thursday, September 18, 1997

  Mr. CRANE. Mr. Speaker, today I am introducing legislation, along 
with my Ways and Means colleagues, Mr. Coyne, Mr. Herger and Mrs. 
Thurman, entitled the ``Charitable Giving Relief Act.'' This 
legislation will provide a deduction for charitable contributions for 
those who do not itemize deductions on their tax returns.
  Specifically, the bill will allow nonitemizers, whose cumulative 
annual charitable contributions exceed $500, to deduct 50 percent of 
any charitable contributions made over that amount. Under current law, 
while nonitemizers receive the standard deduction, the only taxpayers 
who can specifically deduct the value of their charitable contributions 
are those taxpayers who itemize deductions. The most recent figures 
find that nonitemized returns number 84 million compared to 34 million 
itemized returns. Nonitemizers, by any measure, are middle-and lower-
middle-class taxpayers, who, despite the fact that they do not receive 
a deduction for such contributions, give generously to charitable 
causes. It is my understanding that on average nonitemizers give 
roughly $500 in charitable contributions, again, without the benefit of 
tax deductions.
  As we look to next year and the consideration of additional tax 
relief legislation, I believe there is no group of taxpayers more 
deserving of tax relief than those who give of what little they have to 
help other worthy endeavors and charitable causes. While those who 
itemize are directly rewarded for their efforts, those that do not 
itemize are not rewarded. The legislation I am introducing today will 
ensure that those who make considerable contributions to the nonprofit 
community are rewarded, at least to some extent, by the Tax Code.
  For those who might suggest that nonitemizers are rewarded by virtue 
of the fact that the standard deduction for nonitemizers is intended to 
incorporate some degree of charitable contributions, I would respond by 
pointing to the figures mentioned earlier. Indeed, the standard 
deduction is, in effect, designed to take into account the average 
cumulative basket of those expenditures, including charitable 
contributions, that might otherwise be considered as individually 
itemized deductions. However, since my legislation is designed to 
provide a partial deduction--50 percent--for those nonitemizers who 
contribute more than the average amount to charity, such a concern 
would certainly appear to be something less than compelling.
  Finally, I would note that while in my view, donations to charity are 
primarily motivated by altruistic concerns, those that give can be 
sensitive to tax considerations. Independent Sector, the largest 
national association for nonprofits, strongly believes this legislation 
will encourage additional giving to the charitable-nonprofit sector. My 
colleagues, whether you believe that we need to reward those that give, 
or believe that this type proposal will encourage more giving, this 
bill deserves your consideration and support. Americans are the most 
generous people in the world, and I hope to reward and continue this 
tradition with today's introduction of the Charitable Giving Relief 
Act.

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