[Congressional Record (Bound Edition), Volume 147 (2001), Part 2]
[Extensions of Remarks]
[Page 2525]
[From the U.S. Government Publishing Office, www.gpo.gov]



           IN SUPPORT OF THE CHARITABLE GIVING TAX RELIEF ACT

                                 ______
                                 

                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                      Wednesday, February 28, 2001

  Mr. CRANE. Mr. Speaker, today I am introducing legislation entitled 
the ``Charitable Giving Relief Act''. This is one of three bills I am 
introducing today to correct certain anomalies in the tax code that 
discourage charitable giving.
  Specifically, this bill will allow nonitemizers to deduct 100 percent 
of any charitable contributions up to the amount of the standard 
deduction. Under current law, while nonitemizers receive the standard 
deduction, only itemizers can take a deduction for their charitable 
contributions.
  Non-itemizers are predominantly low- and middle-income taxpayers who 
as a group give generously to charitable causes. However, lacking a 
specific deduction for their charitable contributions, there can be no 
question that they face a disincentive to making charitable 
contributions relative to itemizers, who tend to be upper-middle income 
and upper-income taxpayers. This certainly appears unfair. But, more 
importantly, it means charitable organizations supported predominantly 
by lower-income individuals are even more strapped for financial 
support than they need be. For example, churches serving lower-income 
communities have fewer resources to address the needs of their 
congregations as a result of this disincentive.
  I introduced similar legislation in the 106th Congress, and 149 
Members signed on as cosponsors. I have made two important changes to 
last year's bill, however. First, taxpayers would now be able to deduct 
the full amount of their contribution, rather than only half And, 
second, to prevent certain individuals from gaming the system I limit 
the amount a non-itemizer can take to the amount of the standard 
deduction.
  Along with the two other bills I am introducing today preserving the 
charitable deduction against the itemized deduction phase-down and 
allowing IRA rollovers to charity, we have an excellent opportunity to 
advance sound tax policy and sound social policy by returning to our 
Nation's historical emphasis on private activities and personal 
involvement in the well-being of our communities. These bills will 
significantly increase the resources available to our charitable 
organizations.
  Charity benefits both the giver and the receiver in like proportions. 
The act of giving elevates the heart of the giver. The act of receiving 
elevates the condition of the recipient. Charity is thus a blessed act 
that should suffer no discouragement from something so mean as the tax 
code.

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