[Congressional Record (Bound Edition), Volume 146 (2000), Part 9]
[Extensions of Remarks]
[Page 12210]
[From the U.S. Government Publishing Office, www.gpo.gov]



          INTRODUCTION OF THE MEDICAL RESEARCH INVESTMENT ACT

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                           HON. JENNIFER DUNN

                             of washington

                    in the house of representatives

                        Thursday, June 22, 2000

  Ms. DUNN. Mr. Speaker, I rise today with my friend Mr. Cardin of 
Maryland to introduce the Medical Research Investment Act.
  The MRI Act increases the annual percentage-of-income limitations for 
individual charitable contributions for medical research from 50 
percent to 80 percent. To the extent that such medical research 
contributions by an individual exceed the enhanced annual percent-of-
income limitation, such excess would be permitted to be carried forward 
for the succeeding ten taxable years, rather than for the 5 years 
allowed under current law. In addition, the legislation ends the 
unfavorable treatment of gifts of stock acquired by incentive stock 
options for an individual who gives publicly traded stock, earmarked 
for medical research, to a charitable organization during the first 
year after the date of exercise of the stock option. The MRI Act will 
prevent those taxpayers from being penalized with ordinary income tax 
or alternative minimum tax when they are trying to give away their 
wealth to help people. No longer will people have to sell $140 worth of 
stock to give away $100, or delay their contributions when that money 
can be put to work today curing disease.
  This country stands on the threshold of an important opportunity for 
philanthropy. More Americans than ever, many in the high-tech 
industries, have been able to amass an abundance of wealth in a short 
time, and are eager to invest in their communities and in their nation. 
This legislation allows such high net worth donors, who have the 
capacity to contribute significantly more than they can deduct under 
current law, to make large charitable contributions for medical 
research. It also allows those same potential donors, many of whom have 
a large part of their wealth tied up in stock options, to contribute 
their stock to a charity for medical research without incurring taxable 
income.
  Academic research on charitable giving has found, time and again, 
that individuals tend to give more when the price of giving is lower. 
This legislation establishes the favorable tax treatment that will 
stimulate charitable donations of cash and property to medical 
research. In fact, a study by Price WaterhouseCoopers estimated that if 
the proposal were effective this year, the additional giving spurred by 
this bill would be $180.4 million in 2000--over a 4 percent increase in 
charitable giving by individuals for medical research. Over 5 years, it 
would inspire over $1 billion dollars in additional medical research. 
In my home state of Washington alone, the increase in the first year 
would be $3.67 million.
  Increased investment in medical research consistently results in an 
improvement in the health of Americans and in the health of America 
itself. For instance, increases in life expectancy in the 1970's and 
1980's were worth $57 trillion to America. Indeed, improvements in 
health have accounted for almost one-half of the actual gain in 
American living standards in the past 50 years. It is anticipated that 
if medical research reduced deaths from cancer by just one-fifth, it 
would be worth $10 trillion to Americans. Personal, medical, and 
insurance expenditures would be reduced, as would public expenditures 
for Medicare, Medicaid, and other governmental medical assistance 
programs. Losses in national productivity due to illness would be 
reduced as well. In a country where cancer costs the nation in excess 
of $107 billion annually, diabetes costs us $105 billion annually, and 
Parkinson's Disease in excess of $25 billion annually, there is 
certainly room for improvement in health. Quick and steady improvement 
is only possible with increased funding of research.
  Today at the introduction of this bill, Cathy and Caity Rigg of 
Enumclaw, Washington joined us to tell their story. Caity is 8 years 
old and suffers from juvenile diabetes. She and her mother Cathy have 
been tireless advocates for increasing both government and private 
funds to find a cure for diabetes. Under this bill, we will greatly 
enhance the available funds for research. I am attaching Caity's 
remarks since I believe that she, more so than anyone, can attest to 
the difficulties of living with a debilitating disease.
  Mr. Speaker, the time to act--to secure the significant gifts that 
many individuals are anxious to donate to charities--is now. We are 
entering an era of explosive growth in knowledge that will 
substantially advance scientists' ability to understand, prevent, and 
cure disease. I hope I can count on the support of each Member of 
Congress to pass this bipartisan bill. It is crucial to the health of 
every American.

       Thank you Congresswoman Jennifer Dunn. Thank you to all the 
     congress members here today for remembering kids like me.
       My name is Caity Rigg and I'm 8 years old. I've had 
     diabetes for 4 years now. In second grade last year we had 
     our 100th day of school. My teacher asked if I had $100 to 
     spend what would I do with it. I wrote that I would give it 
     to the doctors so they could find a cure for my diabetes.
       I still take 4 shots of insulin every day in my tummy, legs 
     and arms to keep me alive. Sometimes it hurts really bad and 
     I cry but Mom always hugs me. I poke my fingers to get blood 
     all day long so I can see if I need food or medicine. When I 
     need food I sometimes feel really bad and my head gets dizzy.
       I see nurse Julie at school every day to check my blood 
     sugar. Some days its good but some days I need juice or a 
     shot in my arm. I don't want to do it anymore, but I have to 
     so I don't go blind or lose an arm or leg or something bad. 
     Mom promises there is no diabetes in heaven, but I want to 
     get rid of it before then.
       Please help me by passing the Medical Research Investment 
     Act so that more money will be donated to help scientists and 
     doctors find a cure for me and other children who have to go 
     through what I do.
       Thank You!!

       

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