[Congressional Record (Bound Edition), Volume 145 (1999), Part 3]
[Extensions of Remarks]
[Page 3587]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      CHARITABLE GIVING INCENTIVES

                                 ______
                                 

                          HON. MARK E. SOUDER

                               of indiana

                    in the house of representatives

                        Wednesday, March 3, 1999

  Mr. SOUDER. Mr. Speaker, today I am re-introducing the ``Giving 
Incentive and Volunteer Encouragement Act'', the GIVE Act, to provide 
an increased incentive for charitable giving. The vast majority of 
Americans agree that charitable organizations and the nonprofit sector 
are more efficient and effective in the use of donations than the 
federal government is with additional tax revenue. The goal is to 
decrease the cost of giving and allow more Americans to give more 
generously to those charities they feel are making the greatest impact 
in the lives of their neighbors and communities. In addition to 
increasing the power of charitable donations, the bill increases 
flexibility, once again provides lower income taxpayers the opportunity 
to deduct charitable deductions, and the bill would eliminate the cap 
on charitable giving which hinders additional giving by those most able 
to give. Specifically, the legislation would:
  Allow individuals to deduct 120% of the value of their charitable 
donations.--This will encourage additional giving to private 
organizations and increase the total amount of charitable giving. 
Experts agree that the key factors in determining the amount of 
charitable giving are income and price. This provision will increase 
charitable giving by decreasing the effective cost to the giver.
  Allow non-itemizers who give more than $1,000 to charity (or $2,000 
filing jointly) to deduct their donations.--There's simply no reason 
why the government should encourage philanthropy only among the better-
off. Before the 1986 tax bill, all taxpayers were able to deduct their 
charitable donations, not just those who make enough to itemize 
deductions. Restoring this provision to the tax code will empower 
everyone, not merely people of means, to give back to their community 
through charitable donations.
  Exclude charitable giving from the overall limitation on itemized 
deductions.--By reducing allowable deductions to 3% of the taxpayer's 
income over $100,000, the 1990 tax bill placed unnecessary hurdles in 
front of those taxpayers most able to give. A person in need doesn't 
care what his benefactor's tax bracket is, and neither should the 
government.
  Extend the deadline for making charitable donations until April 15.--
Most taxpayers take note of allowable deductions only when they fill 
out their tax returns. They often realize, in retrospect, that they 
could have given more to charity in the previous year. Current law 
already allows deductions for contributions to IRA's up until filing 
time. By extending similar treatment to charitable contributions, we 
can (1) assist taxpayers' planning, (2) increase the incentive for 
taxpayers facing penalties for underwithholding, and (3) help advertise 
the value of the charitable giving tax incentive. We can also encourage 
those whose giving is curtailed at the end of the year by the holiday 
cash crunch.
  I am grateful for my twenty colleagues which have joined me as 
original cosponsors and invite other members to join me by cosponsoring 
this important incentive for increased charitable giving and to allow 
more Americans the privilege of contributing greater to charity. We 
must continue to encourage the tremendous charitable efforts which 
enrich our communities and improve our society while providing 
significant tax relief for American taxpayers.

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