[Congressional Record Volume 149, Number 055 (Monday, April 7, 2003)]
[Senate]
[Page S4902]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

           By Mr. DORGAN (for himself and Mr. Warner):
  S. 804. A bill to amend the Internal Revenue Code of 1986 to allow a 
nonrefundable tax credit for contributions to congressional candidates; 
to the Committee on Finance.
  Mr. DORGAN. Mr. President, today, I am introducing a bill with my 
colleague from Virginia, Senator Warner, that provides tax incentives 
for American families to participate in political campaigns. It will 
empower millions of Americans to become engaged in our political 
system, by providing a tax credit to those who donate money to 
congressional candidates.
  As campaigns become more and more expensive, the number of small 
contributors is actually decreasing. The current campaign finance 
system is becoming dominated by big dollar contributors, a trend that 
is troubling to me.
  Our bill would make middle income Americans more able to donate to 
candidates. Specifically, the bill would provide a maximum $400 tax 
credit to married couples earning up to $120,000 for their campaign 
contributions. For singles with income up to $60,000, the tax credit 
would apply to contributions up to $200. This credit will provide a 
dollar for dollar offset for contributions, an incentive that could 
encourage the many working families to consider contributions to the 
candidates of their choice.
  This is not a new idea. This type of credit was a part of our tax 
system for more than a decade in the 1970s and 1980s. It has been a 
part of many campaign finance reform proposals over the years, 
proposals that have been introduced and supported by both Democrats and 
Republicans. And this policy proposal is the focus of a study last year 
by the American Enterprise Institute, AEI, which concluded that this 
approach would help to elevate small donors from the supporting role 
that they now play. So, our proposal has been successful in the past, 
and it has had broad support from both parties over the past thirty 
years.
  Participation in the political process is key to a strong democracy. 
This bill will help broaden participation and will provide an incentive 
for more Americans to be included in political campaigns.
  I ask unanimous consent that the text of this bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 804

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

     SECTION 1. CREDIT FOR CONTRIBUTIONS TO CONGRESSIONAL 
                   CANDIDATES.

       (a) General Rule.--Subpart A of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     nonrefundable personal credits) is amended by inserting after 
     section 25B the following new section:

     ``SEC. 25C. CONTRIBUTIONS TO CONGRESSIONAL CANDIDATES.

       ``(a) General Rule.--In the case of an eligible individual, 
     there shall be allowed as a credit against the tax imposed by 
     this chapter for the taxable year an amount equal to the 
     total of contributions to candidates for the office of 
     Senator or Representative in, or Delegate or Resident 
     Commissioner to, the Congress.
       ``(b) Maximum Credit.--The credit allowed by subsection (a) 
     for a taxable year shall not exceed $200 ($400 in the case of 
     a joint return).
       ``(c) Verification.--The credit allowed by subsection (a) 
     shall be allowed, with respect to any contribution, only if 
     such contribution is verified in such manner as the Secretary 
     shall prescribe by regulations.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Candidate; contribution.--The terms `candidate' and 
     `contribution' have the meanings given such terms in section 
     301 of the Federal Election Campaign Act of 1971.
       ``(2) Eligible individual.--The term `eligible individual' 
     means any taxpayer whose adjusted gross income for the 
     taxable year does not exceed $60,000 ($120,000 in the case of 
     a joint return).''.
       (b) Conforming Amendments.--
       (1) Section 642 of the Internal Revenue Code of 1986 
     (relating to special rules for credits and deductions of 
     estates or trusts) is amended by adding at the end the 
     following new subsection:
       ``(j) Credit for Certain Contributions Not Allowed.--An 
     estate or trust shall not be allowed the credit against tax 
     provided by section 25C.''.
       (2) The table of sections for subpart A of part IV of 
     subchapter A of chapter 1 of such Code is amended by 
     inserting after the item relating to section 25B the 
     following new item:

``Sec. 25C. Contributions to congressional candidates.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to contributions made after the date 
     of the enactment of this Act, in taxable years ending after 
     such date.
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