[Congressional Record (Bound Edition), Volume 146 (2000), Part 5]
[Extensions of Remarks]
[Page 6962]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 6962]]

                          EXTENSIONS OF REMARKS

       INTRODUCTION OF THE NEIGHBOR TO NEIGHBOR ACT, MAY 4, 2000

                                 ______
                                 

                           HON. JENNIFER DUNN

                             of washington

                    in the house of representatives

                         Thursday, May 4, 2000

  Ms. DUNN. Mr. Speaker, the generous hearts of Americans know no 
income or class boundaries. Tens of millions of people give annually to 
support charities such as their local churches, youth and family 
organizations, and medical research programs. It is a testament to the 
willingness of families to give back to the community on which they 
rely on for so much.
  Yet, under current law, only a small portion of individuals who 
contribute to charities receive a tax benefit for their gifts. This is 
because the deduction that is provided for a gift to charity is only 
available to taxpayers who itemize on their returns. These filers 
represent only 30 percent of all taxpayers.
  Today, along with Senator Paul Coverdell, I rise to introduce the 
Neighbor to Neighbor Act. This important proposal will extend the 
charitable deduction to non-itemizers and will grant them tax relief on 
the first dollar of their gift. Under the bill, joint filers will 
receive dollar-for-dollar deduction on their donations up to $1,000 and 
individuals will receive a deduction on their donations up to $500. The 
Neighbor to Neighbor Act will benefit 67 million charitable givers and 
will for the first time encourage and reward contributions made by all 
taxpayers. According to the Joint Committee on Taxation, this bill will 
provide $52 billion in tax relief over the next 10 years. Most 
importantly, since the overwhelming majority of non-itemizers are low- 
and middle-income Americans, this is genuinely broad-based tax relief.
  One important element of charitable giving is being able to plan a 
contribution with the tax deduction in mind. For most taxpayers who now 
receive the deduction, however, this means performing an estimate of 
future tax liability and making contributions accordingly. This can be 
an inefficient and imprecise method.
  The Neighbor to Neighbor Act will eliminate the complexities of this 
current system by allowing both itemizers and non-itemizers the ability 
to contribute to charities through April 15th and deduct that 
contribution from the previous year's taxes. As a result, taxpayers 
will have the ability to contribute after they receive their tax 
information at the beginning of the year and can precisely calculate 
their liability and give back accordingly.
  The Neighbor to Neighbor Act acknowledges the important role that all 
Americans play in building strong communities through private 
charities. By every measure, these groups are more effective at 
instilling strong values in our youth and transforming society from the 
ground up. I urge my colleagues in both the House and Senate to support 
this important bill.

                          ____________________