[Congressional Record Volume 146, Number 16 (Tuesday, February 22, 2000)]
[Senate]
[Pages S682-S683]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANTORUM (for himself and Mr. Coverdell):
  S. 2077. A bill to amend the Internal Revenue Code of 1986 to allow 
nonitemizers a deduction for a portion of their charitable 
contributions; to the Committee on Finance.


                  THE CHARITABLE GIVING TAX RELIEF ACT

   Mr. SANTORUM. Mr. President, today, I am introducing the 
Charitable Giving Tax Relief Act along with my colleague Senator 
Coverdell. This legislation will allow non-itemizers to deduct 50 
percent of their charitable giving, after they exceed a cumulative 
total of $500 in annual donations.
  As we approach another tax deadline, more than 84 million Americans 
cannot deduct any of their charitable contributions because they do not 
itemize their tax returns. In contrast, there are 34 million Americans 
who itemize and receive this benefit. In Pennsylvania, there are nearly 
4 million taxpayers who do not itemize deductions while slightly more 
than 1.5 million taxpayers do itemize.
  While Americans are already giving generously to charities making a 
significant positive impact in our communities, this legislation 
provides an incentive for additional giving and allows non-itemizers 
who typically have middle to lower middle incomes to also benefit from 
additional tax relief. In fact, non-itemizers earning less than $30,000 
give the highest percentage of their household income to charity. It is 
estimated that restoring this tax relief provision which existed in the 
1980's would encourage more than $3 billion of additional charitable 
giving a year. According to Price Waterhouse, the Charitable Giving 
Relief Act would result in $725 million in additional charitable giving 
in Pennsylvania alone over a five year period.
  Representative Philip Crane of Illinois has previously introduced 
identical bipartisan legislation, H.R. 1310, with 122 cosponsors in the 
House of Representatives. The legislation is also supported by a long 
list of nonprofit groups and the Independent Sector, a coalition of 
more than 700 nonprofits, foundations, and other charitable groups.
  President Clinton in his FY2001 budget has included a provision which 
would allow non-itemizers to deduct 50 percent of their charitable 
contributions in excess of $1,000 for single filers and $2,000 for 
joint filers. The President's proposal would eventually lower the 
threshold to $500 in 2006 in a manner consistent with the Charitable 
Giving Tax Relief Act.
  One important dimension of my involvement in promoting charitable 
efforts helping to revitalize our communities, empower individuals and 
families, and enhance educational opportunities is encouraging 
charitable giving. This legislation is a great opportunity to lower the 
tax burden on the many Americans who have not received any tax relief 
for their charitable contributions since 1986.
  As Senate Co-Chair of the Congressional Empowerment Caucus with 
Senator Lieberman and in my efforts with the Renewal Alliance, I am 
committed to helping further unleash the potential of charitable 
organizations and harness the generosity of Americans to improve the 
quality of life of all Americans. I look forward to working with my 
colleagues and the President to provide additional tax relief and 
incentives for charitable giving this year.

[[Page S683]]

  Mr. President, I ask that the text of the bill be printed in the 
Record.
  The text of the bill follows:

                                S. 2077

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Charitable Giving Tax Relief 
     Act''.

     SEC. 2. DEDUCTION FOR PORTION OF CHARITABLE CONTRIBUTIONS TO 
                   BE ALLOWED TO INDIVIDUALS WHO DO NOT ITEMIZE 
                   DEDUCTIONS.

       (a) In General.--Section 170 of the Internal Revenue Code 
     of 1986 (relating to charitable, etc., contributions and 
     gifts) is amended by redesignating subsection (m) as 
     subsection (n) and by inserting after subsection (l) the 
     following new subsection:
       ``(m) Deduction for Individuals Not Itemizing Deductions.--
     In the case of an individual who does not itemize his 
     deductions for the taxable year, there shall be taken into 
     account as a direct charitable deduction under section 63 an 
     amount equal to 50 percent of the excess of the amount 
     allowable under subsection (a) for the taxable year over 
     $500.''
       (b) Direct Charitable Deduction.--
       (1) In general.--Subsection (b) of section 63 of such Code 
     is amended by striking ``and'' at the end of paragraph (1), 
     by striking the period at the end of paragraph (2) and 
     inserting ``, and'', and by adding at the end the following 
     new paragraph:
       ``(3) the direct charitable deduction.''
       (2) Definition.--Section 63 of such Code is amended by 
     redesignating subsection (g) as subsection (h) and by 
     inserting after subsection (f) the following new subsection:
       ``(g) Direct Charitable Deduction.--For purposes of this 
     section, the term `direct charitable deduction' means that 
     portion of the amount allowable under section 170(a) which is 
     taken as a direct charitable deduction for the taxable year 
     under section 170(m).''
       (3) Conforming amendment.--Subsection (d) of section 63 of 
     such Code is amended by striking ``and'' at the end of 
     paragraph (1), by striking the period at the end of paragraph 
     (2) and inserting ``, and'', and by adding at the end the 
     following new paragraph:
       ``(3) the direct charitable deduction.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______