[Congressional Record (Bound Edition), Volume 147 (2001), Part 2]
[Extensions of Remarks]
[Page 2073]
[From the U.S. Government Publishing Office, www.gpo.gov]



          CHARITY TO ELIMINATE POVERTY TAX CREDIT ACT OF 2001

                                 ______
                                 

                             HON. JIM KOLBE

                               of arizona

                    in the house of representatives

                      Wednesday, February 14, 2001

  Mr. KOLBE. Mr. Speaker, we are introducing today--Valentine's Day--
the Charity To Eliminate Poverty Tax Credit Act of 2001. This 
legislation is a Valentine's present for all the families and people 
who are struggling every day to survive. I am talking about our 
nation's poor.
  We are a wealthy nation. The federal government should reward people 
for trying to help raise the standard of living of those living in 
poverty.
  This bill would give every American the option of sending $100 to an 
organization that primarily assists the poor instead of sending the 
money to the IRS.
  When you fill out your tax forms this year, wouldn't you like the 
opportunity to redirect $100 of your money that is headed to the 
federal bureaucracy and give it directly to an organization that is 
helping raise the standard of living of some of America's poorest 
citizens?
  The Charity To Eliminate Poverty Tax Credit Act of 2001 allows a tax 
credit up to $100 ($200 if filing a joint return) for charitable 
contributions to tax-exempt organizations that help people whose annual 
income is under 150 percent of the official poverty level. Currently, 
that level is $12,525 annually for an individual and $25,575 for a 
family of four.
  The legislation also acknowledges the impact that inflation can have 
on the ``real'' dollars that people may give to charity so we have 
indexed the tax credit amount to inflation.
  Another important provision requires an organization to spend at 
least 70 percent of its money on helping the poor in order to qualify. 
Only a maximum of 30 percent of the charitable organization's budget 
can be spent on administrative expenses, expenses to influence 
legislation, fundraising activities, and litigation costs, among 
others. We want the charitable contribution to go to the poor, not to 
increase an administrator's salary.
  President Bush's tax proposal touches on this objective by suggesting 
that a charitable tax deduction be allowed for people who do not 
itemize their deductions. The President also has encouraged the States 
to provide a charitable tax credit. In my State of Arizona, we are 
already allowed to take a $200 charitable tax credit. This legislation 
goes one step further by offering the credit at the federal level.
  Private charities succeed because they are community driven and 
stress personal responsibility. These local food banks and shelters 
become personally involved in helping change lives. I believe a better 
way to help the poor is through local organizations that are designed, 
implemented, and staffed by residents of the neighborhoods they serve.
  Also, the tax credit will put more money on the table for programs 
that help the poor and create a more competitive atmosphere. Each 
organization will be overseen and judged, not by Washington, DC, but by 
the community and the people giving the money to the charitable 
organization. This will in turn improve services to the poor.
  Hopefully, we will all agree to give a Valentine's gift to our 
nation's poor by enacting this anti-poverty relief tax credit--the 
Charity To Eliminate Poverty Tax Credit Act of 2001.

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