[Congressional Record (Bound Edition), Volume 145 (1999), Part 4]
[Extensions of Remarks]
[Page 6065]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  THE CHARITABLE GIVING TAX RELIEF ACT

                                 ______
                                 

                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                        Thursday, March 25, 1999

  Mr. CRANE. Mr. Speaker, today I am joined by my Ways and Means 
Committee colleagues Messrs. Coyne and Herger and Mrs. Thurman in 
introducing the Charitable Giving Tax Relief Act.
  Identical to a bill we introduced in the 105th Congress, the 
Charitable Giving Tax Relief Act will allow taxpayers who do not 
itemize their tax returns to deduct a portion of their charitable 
giving. Specifically, non-itemizers whose cumulative annual charitable 
donations exceed $500 will be able to deduct 50 percent of any 
charitable donations over that amount.
  Under current law, non-itemizers receive a standard deduction while 
only taxpayers who itemize their deductions receive a direct tax 
benefit for giving to charity. Non-itemizers make up the vast majority 
of tax filers with two and a half times more returns than itemizers. 
Moreover, non-itemizers are typically middle to lower middle income 
level taxpayers who, despite their modest earnings, still give quite 
generously to charitable causes. In fact, non-itemizers earning less 
than $30,000 give the highest percentage of their household income to 
charity. I believe these individuals deserve a tax break for their 
generosity.
  This idea is not new. In the early 1980s, non-itemizers did enjoy the 
ability to deduct a portion of their charitable giving. In the last 
Congress, thanks to the support of the not-for-profit community, 
especially Independent Sector and its member organizations, 144 
colleagues cosponsored my bill. I hope to build on that success and 
have this legislation included in any major tax bill that we might 
consider during this Congress.
  As direct federal subsidies to non-profit organizations are being 
reduced, the private sector must fill the gap to provide the necessary 
resources. The Charitable Giving Tax Relief Act will help in that cause 
by rewarding those taxpayers standing in the gap. Independent Sector 
believes that this bill may even encourage more giving to charitable 
organizations. In fact, one study projects that giving could increase 
by $2.7 billion a year.
  Americans have traditionally been the most generous people in the 
world. From churches to schools, the arts to social services, we fund 
and support all types of charitable causes. I believe altruism is the 
basis for that generosity. However, I realize that those who give can 
be sensitive to tax considerations. My ultimate goal is to remove the 
tax code as an obstacle to charitable giving.
  I encourage my colleagues to join Mr. Coyne, Mr. Herger, Mrs. Thurman 
and me in our effort to reward and encourage the American tradition of 
philanthropy by agreeing to sponsor the Charitable Giving Relief Act.

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