[Congressional Record (Bound Edition), Volume 149 (2003), Part 10]
[Extensions of Remarks]
[Page 14031]
[From the U.S. Government Publishing Office, www.gpo.gov]




    A BILL TO RESTORE EQUITY IN THE TAXATION OF POLITICAL CAMPAIGN 
                               COMMITTEES

                                 ______
                                 

                            HON. GENE GREEN

                                of texas

                    in the house of representatives

                         Thursday, June 5, 2003

  Mr. GREEN of Texas. Mr. Speaker, I rise today to introduce a bill 
that will restore equity in the taxation of political campaign 
committees.
  Currently, the tax code treats income in federal political campaign 
committees the same as corporate income. This allows candidates for 
congressional office to pay campaign taxes on a graduated rate scale, 
offering us significant tax benefits.
  Specifically, we pay a 15 percent tax rate on the first $50,000 of 
income in our campaign accounts. Income in our accounts between $50,001 
and $75,000 is taxed at 25 percent, and income between $75,001 and $10 
million is taxed at 34 percent. Only when our campaign accounts boast 
over $10 million are we subjected to a 35 percent tax rate.
  Mr. Speaker, each of us in this chamber can attest to the 
ridiculously high amount of money that we must raise in order to run a 
formidable campaign for Congress. However, I doubt that many of us 
actually reach that $10 million threshold and pay a 35 percent tax rate 
on the money in our campaign accounts.
  Unfortunately, our colleagues in state legislatures across the 
country aren't as fortunate. As Texas State Senator Jon Lindsay pointed 
out to us in the Texas Delegation, every dollar in his campaign account 
is taxed at a flat 35 percent rate. In fact, only candidates for 
Congress are able to enjoy this graduated tax schedule.
  To correct this inequity in our tax code, I am introducing 
legislation today to amend the Internal Revenue Code and mandate that 
state political campaign committees are taxed in the same manner as our 
federal campaign committees.
  Joining me in this effort to ensure that the tax code treats our 
state legislators fairly is the entire Democratic wing of the Texas 
delegation: Representative Chris Bell, Representative Lloyd Doggett, 
Representative Chet Edwards, Representative Martin Frost, 
Representative Charles Gonzalez, Representative Ralph Hall, 
Representative Ruben Hinojosa, Representative Sheila Jackson-Lee, 
Representative Eddie Bernice Johnson, Representative Nick Lampson, 
Representative Solomon P. Ortiz, Representative Silvestre Reyes, 
Representative Ciro Rodriguez, Representative Max Sandlin, 
Representative Charles Stenholm, and Representative Jim Turner.
  My thanks goes out to each of them for their support, as well as to 
Senator Lindsay for bringing this matter to our attention. I urge my 
fellow colleagues to co-sponsor this bill and show their support for 
the state legislators who work hard representing them back home.

                          ____________________