[Congressional Record (Bound Edition), Volume 149 (2003), Part 1]
[Extensions of Remarks]
[Page 256]
[From the U.S. Government Publishing Office, www.gpo.gov]




   INTRODUCTION OF THE CITIZENS INVOLVEMENT IN CAMPAIGNS (CIVIC) ACT

                                 ______
                                 

                          HON. THOMAS E. PETRI

                              of wisconsin

                    in the house of representatives

                        Tuesday, January 7, 2003

  Mr. PETRI. Mr. Speaker, today, I am introducing legislation to 
establish a program of limited tax credits and tax deductions to get 
average Americans involved in the political process. My bill, the 
Citizens Involvement in Campaigns (CIVIC) Act, will broaden the base of 
political contributors and limit the influence of big money donors in 
federal elections.
  Members of Congress can be forgiven for being exhausted by the recent 
debates over campaign finance reform that last year concluded with 
passage of the Bipartisan Campaign Reform Act (BCRA). Although that 
legislation will curb some of the worst abuses of our current campaign 
system, such as the unlimited soft money loophole, the reality is that 
special interests and high-income donors still will have a 
disproportionate level of influence in our political system. We cannot 
stop here, with the job only partly complete.
  As the next step in the process of campaign finance reform, we need 
to take a fresh look at innovative approaches, including ways that 
encourage, and not restrict, people's participation in our campaigns. 
Toward this end, I have been advocating tax credits and deductions for 
small political contributions for many years. An updated tax credit 
system would be a simple and effective means of balancing the influence 
of big money donors and bringing individual contributors back to our 
campaigns. The impact of this counterweight will reduce the burden of 
raising money, as well as the appearance of impropriety that 
accompanies the money chase.
  Most would agree that the ideal way to finance political campaigns is 
through a broad base of donors. But, as we are all painfully aware, the 
economic realities of modern-day campaigning lead many candidates to 
focus most of their efforts on collecting funds from a few large 
donors. This reality alienates many Americans from the political 
process.
  The concept of empowering small donors is not a new idea. For 
example, from 1972 to 1986, the federal government offered a tax credit 
for small political contributions. This provided an incentive for 
average Americans to contribute to campaigns in small amounts while 
simultaneously encouraging politicians to solicit donations from a 
larger pool of contributors. Currently, six geographically and 
politically diverse states (Oregon, Minnesota, Ohio, Virginia, 
Arkansas, and Arizona) offer their own tax credits for political 
contributions. These state-level credits vary in many respects, but all 
share the same goal of encouraging average Americans to become more 
involved.
  The CIVIC Act can begin the process of building this counterweight 
for federal elections. This bill is designed to encourage Americans who 
ordinarily do not get involved in politics beyond casting a vote every 
two or four years (that is, if they bother to vote at all) to become 
more active participants in our political process.
  The CIVIC Act will reestablish and update the discontinued federal 
tax credit. Taxpayers can choose between a 100 percent tax credit for 
political contributions to federal candidates or national political 
parties (limited to $200 per taxable year), or a 100 percent tax 
deduction (limited to $600 per taxable year). Both limits, of course, 
are doubled for joint returns. As long as political parties and 
candidates promote the existence of these credits, the program can have 
a real impact and aid in making elections more grassroots affairs than 
they are now.
  A side benefit of this legislation will be to strengthen political 
parties, which, many feel, have been weakened by the passage of BCRA. 
Under the CIVIC Act, only federal candidates and national party 
committees count as eligible recipients for purposes of the tax 
benefits. This will allow the parties to tap new sources of revenue and 
begin to replace the massive soft-money donations that have been cut 
off.
  In conclusion, a limited tax credit for political contributions can 
be a bipartisan, cost-efficient method for helping balance the 
influence of large money donors in the American electoral process. 
Instead of driving away most Americans from participation in political 
life, we can invite them in. It seems to me that this will be a 
fruitful way to clean up our system, while at the same time convincing 
Americans that they actually have a meaningful stake in elections.

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