[Congressional Record (Bound Edition), Volume 147 (2001), Part 6]
[Extensions of Remarks]
[Page 8508]
[From the U.S. Government Publishing Office, www.gpo.gov]



               THE STATE AND LOCAL CANDIDATE FAIRNESS ACT

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                    HON. F. JAMES SENSENBRENNER, JR.

                              of wisconsin

                    in the house of representatives

                        Wednesday, May 16, 2001

  Mr. SENSENBRENNER. Mr. Speaker, today I am introducing legislation to 
extend to the principal campaign committee of state and local 
candidates for elective public office the same graduated tax rates 
which apply to the principal campaign committee of a candidate for 
Congress.
  In running for Congress, Members of the House are made aware of the 
Section 527 tax laws that apply to congressional campaign committees. 
What many Members of Congress may not be aware of is the unfair tax 
treatment of campaign committees for state and local candidates. 
Recently, state representatives from my home state of Wisconsin brought 
to my attention the burdensome tax laws involving the graduated tax 
rates applicable to interest bearing accounts for state and local 
campaign committees. Under current law, the tax rate applied to the 
interest earned by a campaign committee is determined by which office 
the candidate seeks. State and local candidates are forced to pay a 35% 
tax rate while congressional candidates pay only 15% on interest 
bearing accounts for their primary campaign committees.
  That is why I am introducing the State and Local Candidate Fairness 
Act. This legislation would allow state and local candidates to pay the 
same tax rate as congressional candidates on interest bearing accounts 
for their campaign committees.
  As we are asking our state and local officials to build better and 
safer communities, we should be encouraging more involvement from our 
citizens and not discouraging them from participating in state or local 
government.
  By addressing unfair tax burdens on state candidates, my legislation 
would also help to simplify the tax code. By making the tax rates the 
same for state and local candidates as they are for congressional 
candidates, the tax code will in a small way become simpler for 
everyone running for office. I urge my colleagues to support this 
legislation to fight against unfair tax rates for candidates for state 
and local office.

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