[House Report 113-496]
[From the U.S. Government Publishing Office]


113th Congress  }                                           {    Report
  2d Session    }        HOUSE OF REPRESENTATIVES           {   113-496

=======================================================================
 
           PERMANENT IRA CHARITABLE CONTRIBUTION ACT OF 2014 

                                _______
                                

 June 26, 2014.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

Mr. Camp, from the Committee on Ways and Means, submitted the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 4619]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 4619) to amend the Internal Revenue Code of 1986 to 
make permanent the rule allowing certain tax-free distributions 
from individual retirement accounts for charitable purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
  I. SUMMARY AND BACKGROUND...........................................2
          A. Purpose and Summary.................................     2
          B. Background and Need for Legislation.................     2
          C. Legislative History.................................     2
 II. EXPLANATION OF THE BILL..........................................3
          A. Tax-Free Distributions from Individual Retirement 
              Plans for Charitable Purposes (sec. 408(d)(8) of 
              the Code)..........................................     3
III. VOTES OF THE COMMITTEE...........................................7
 IV. BUDGET EFFECTS OF THE BILL.......................................7
          A. Committee Estimate of Budgetary Effects.............     7
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................     8
          C. Cost Estimate Prepared by the Congressional Budget 
              Office.............................................     8
          D. Macroeconomic Impact Analysis.......................     9
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.......9
          A. Committee Oversight Findings and Recommendations....     9
          B. Statement of General Performance Goals and 
              Objectives.........................................     9
          C. Information Relating to Unfunded Mandates...........    10
          D. Applicability of House Rule XXI 5(b)................    10
          E. Tax Complexity Analysis.............................    10
          F. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................    10
          G. Duplication of Federal Programs.....................    10
          H. Disclosure of Directed Rule Makings.................    11
 VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........11
VII. DISSENTING VIEWS................................................13

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Permanent IRA Charitable Contribution 
Act of 2014''.

SEC. 2. RULE ALLOWING CERTAIN TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL 
                    RETIREMENTS ACCOUNTS FOR CHARITABLE PURPOSES MADE 
                    PERMANENT.

  (a) In General.--Section 408(d)(8) of the Internal Revenue Code of 
1986 is amended by striking subparagraph (F).
  (b) Effective Date.--The amendment made by this section shall apply 
to distributions made in taxable years beginning after December 31, 
2013.

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    H.R. 4619, reported by the Committee on Ways and Means, 
provides that individuals who are at least 70\1/2\ years old 
may make tax-free distributions of up to $100,000 per year from 
an individual retirement account (IRA) to a qualifying 
charitable organization. An identical, temporary provision 
expired for taxable years beginning after December 31, 2013.

                 B. Background and Need for Legislation

    While the Committee continues actively to pursue 
comprehensive tax reform as a critical means of promoting 
economic growth and job creation, the Committee also believes 
that it is important to provide individuals and small 
businesses permanent, immediate tax relief to encourage faster 
economic growth and job creation, while fostering charitable 
giving. By restoring and making permanent the IRA charitable 
distribution option, H.R. 4619 makes permanent an important 
incentive to encourage taxpayers to contribute to charitable 
and religious organizations that support important programs 
across the nation. According to testimony received by the 
Committee, in the first two years it was available, the IRA 
charitable distribution option prompted more than $140 million 
in charitable donations, with the median gift just under 
$4,500, to a broad range of tax-exempt organizations from 
social service providers and religious organizations to 
cultural institutions and schools, organizations that benefit 
communities nationwide.

                         C. Legislative History


Background

    H.R. 4619 was introduced on May 8, 2014, and was referred 
to the Committee on Ways and Means.

Committee action

    The Committee on Ways and Means marked up H.R. 4619, the 
Permanent IRA Charitable Contribution Act of 2014, on May 29, 
2014, and ordered the bill, as amended, favorably reported 
(with a quorum being present).

Committee hearings

    The need for permanent rules regarding IRA rollovers for 
charitable purposes was discussed at no fewer than two hearings 
during the 112th and 113th Congresses:
           Select Revenue Measures Subcommittee Hearing 
        on Certain Expiring Tax Provisions (April 26, 2012); 
        and
           Full Committee Hearing on Tax Reform and 
        Charitable Contributions (February 14, 2013).

                      II. EXPLANATION OF THE BILL


    A. Tax-Free Distributions From Individual Retirement Plans for 
            Charitable Purposes (Sec. 408(d)(8) of the Code)


                              PRESENT LAW

In general

    If an amount withdrawn from a traditional individual 
retirement arrangement (``IRA'') or a Roth IRA is donated to a 
charitable organization, the rules relating to the tax 
treatment of withdrawals from IRAs apply to the amount 
withdrawn and the charitable contribution is subject to the 
normally applicable limitations on deductibility of such 
contributions. An exception applies in the case of a qualified 
charitable distribution.

Charitable contributions

    In computing taxable income, an individual taxpayer who 
itemizes deductions generally is allowed to deduct the amount 
of cash and up to the fair market value of property contributed 
to the following entities: (1) a charity described in section 
170(c)(2); (2) certain veterans' organizations, fraternal 
societies, and cemetery companies;\1\ and (3) a Federal, State, 
or local governmental entity, but only if the contribution is 
made for exclusively public purposes.\2\ The deduction also is 
allowed for purposes of calculating alternative minimum taxable 
income.
---------------------------------------------------------------------------
    \1\Secs. 170(c)(3)-(5).
    \2\Sec. 170(c)(1).
---------------------------------------------------------------------------
    The amount of the deduction allowable for a taxable year 
with respect to a charitable contribution of property may be 
reduced depending on the type of property contributed, the type 
of charitable organization to which the property is 
contributed, and the income of the taxpayer.\3\
---------------------------------------------------------------------------
    \3\Secs. 170(b) and (e).
---------------------------------------------------------------------------
    A taxpayer who takes the standard deduction (i.e., who does 
not itemize deductions) may not take a separate deduction for 
charitable contributions.\4\
---------------------------------------------------------------------------
    \4\Sec. 170(a).
---------------------------------------------------------------------------
    A payment to a charity (regardless of whether it is termed 
a ``contribution'') in exchange for which the donor receives an 
economic benefit is not deductible, except to the extent that 
the donor can demonstrate, among other things, that the payment 
exceeds the fair market value of the benefit received from the 
charity. To facilitate distinguishing charitable contributions 
from purchases of goods or services from charities, present law 
provides that no charitable contribution deduction is allowed 
for a separate contribution of $250 or more unless the donor 
obtains a contemporaneous written acknowledgement of the 
contribution from the charity indicating whether the charity 
provided any good or service (and an estimate of the value of 
any such good or service provided) to the taxpayer in 
consideration for the contribution.\5\ In addition, under 
present law, any charity that receives a contribution exceeding 
$75 made partly as a gift and partly as consideration for goods 
or services furnished by the charity (a ``quid pro quo'' 
contribution) is required to inform the contributor in writing 
of an estimate of the value of the goods or services furnished 
by the charity and that only the portion exceeding the value of 
the goods or services may be deductible as a charitable 
contribution.\6\
---------------------------------------------------------------------------
    \5\Sec. 170(f)(8). For any contribution of a cash, check, or other 
monetary gift, no deduction is allowed unless the donor maintains as a 
record of such contribution a bank record or written communication from 
the donee charity showing the name of the donee organization, the date 
of the contribution, and the amount of the contribution. Sec. 
170(f)(17).
    \6\Sec. 6115.
---------------------------------------------------------------------------
    Under present law, total deductible contributions of an 
individual taxpayer to public charities, private operating 
foundations, and certain types of private nonoperating 
foundations generally may not exceed 50 percent of the 
taxpayer's contribution base, which is the taxpayer's adjusted 
gross income for a taxable year (disregarding any net operating 
loss carryback). To the extent a taxpayer has not exceeded the 
50-percent limitation, (1) contributions of capital gain 
property to public charities generally may be deducted up to 30 
percent of the taxpayer's contribution base, (2) contributions 
of cash to most private nonoperating foundations and certain 
other charitable organizations generally may be deducted up to 
30 percent of the taxpayer's contribution base, and (3) 
contributions of capital gain property to private foundations 
and certain other charitable organizations generally may be 
deducted up to 20 percent of the taxpayer's contribution base.
    Contributions by individuals in excess of the 50-percent, 
30-percent, and 20-percent limits generally may be carried over 
and deducted over the next five taxable years, subject to the 
relevant percentage limitations on the deduction in each of 
those years.
    In general, a charitable deduction is not allowed for 
income, estate, or gift tax purposes if the donor transfers an 
interest in property to a charity (e.g., a remainder) while 
also either retaining an interest in that property (e.g., an 
income interest) or transferring an interest in that property 
to a noncharity for less than full and adequate 
consideration.\7\ Exceptions to this general rule are provided 
for, among other interests, remainder interests in charitable 
remainder annuity trusts, charitable remainder unitrusts, and 
pooled income funds, and present interests in the form of a 
guaranteed annuity or a fixed percentage of the annual value of 
the property.\8\ For such interests, a charitable deduction is 
allowed to the extent of the present value of the interest 
designated for a charitable organization.
---------------------------------------------------------------------------
    \7\Secs. 170(f), 2055(e)(2), and 2522(c)(2).
    \8\Sec. 170(f)(2).
---------------------------------------------------------------------------

IRA rules

    Within limits, individuals may make deductible and 
nondeductible contributions to a traditional IRA. Amounts in a 
traditional IRA are includible in income when withdrawn (except 
to the extent the withdrawal represents a return of 
nondeductible contributions). Certain individuals also may make 
nondeductible contributions to a Roth IRA (deductible 
contributions cannot be made to Roth IRAs). Qualified 
withdrawals from a Roth IRA are excludable from gross income. 
Withdrawals from a Roth IRA that are not qualified withdrawals 
are includible in gross income to the extent attributable to 
earnings. Includible amounts withdrawn from a traditional IRA 
or a Roth IRA before attainment of age 59\1/2\ are subject to 
an additional 10-percent early withdrawal tax, unless an 
exception applies. Under present law, minimum distributions are 
required to be made from tax-favored retirement arrangements, 
including IRAs. Minimum required distributions from a 
traditional IRA must generally begin by April 1 of the calendar 
year following the year in which the IRA owner attains age 
70\1/2\.\9\
---------------------------------------------------------------------------
    \9\Minimum distribution rules also apply in the case of 
distributions after the death of a traditional or Roth IRA owner.
---------------------------------------------------------------------------
    If an individual has made nondeductible contributions to a 
traditional IRA, a portion of each distribution from an IRA is 
nontaxable until the total amount of nondeductible 
contributions has been received. In general, the amount of a 
distribution that is nontaxable is determined by multiplying 
the amount of the distribution by the ratio of the remaining 
nondeductible contributions to the account balance. In making 
the calculation, all traditional IRAs of an individual are 
treated as a single IRA, all distributions during any taxable 
year are treated as a single distribution, and the value of the 
contract, income on the contract, and investment in the 
contract are computed as of the close of the calendar year.
    In the case of a distribution from a Roth IRA that is not a 
qualified distribution, in determining the portion of the 
distribution attributable to earnings, contributions and 
distributions are deemed to be distributed in the following 
order: (1) regular Roth IRA contributions; (2) taxable 
conversion contributions;\10\ (3) nontaxable conversion 
contributions; and (4) earnings. In determining the amount of 
taxable distributions from a Roth IRA, all Roth IRA 
distributions in the same taxable year are treated as a single 
distribution, all regular Roth IRA contributions for a year are 
treated as a single contribution, and all conversion 
contributions during the year are treated as a single 
contribution.
---------------------------------------------------------------------------
    \10\Conversion contributions refer to conversions of amounts in a 
traditional IRA to a Roth IRA.
---------------------------------------------------------------------------
    Distributions from an IRA (other than a Roth IRA) are 
generally subject to withholding unless the individual elects 
not to have withholding apply.\11\ Elections not to have 
withholding apply are to be made in the time and manner 
prescribed by the Secretary.
---------------------------------------------------------------------------
    \11\Sec. 3405.
---------------------------------------------------------------------------

Qualified charitable distributions

    Otherwise taxable IRA distributions from a traditional or 
Roth IRA are excluded from gross income to the extent they are 
qualified charitable distributions.\12\ The exclusion may not 
exceed $100,000 per taxpayer per taxable year. Special rules 
apply in determining the amount of an IRA distribution that is 
otherwise taxable. Taxpayers who elect to make qualified 
conservation contributions may not claim a charitable deduction 
for such amounts. The otherwise applicable rules regarding 
taxation of IRA distributions and the deduction of charitable 
contributions continue to apply to distributions from an IRA 
that are not qualified charitable distributions. A qualified 
charitable distribution is taken into account for purposes of 
the minimum distribution rules applicable to traditional IRAs 
to the same extent the distribution would have been taken into 
account under such rules had the distribution not been directly 
distributed under the qualified charitable distribution 
provision. An IRA does not fail to qualify as an IRA as a 
result of qualified charitable distributions being made from 
the IRA.
---------------------------------------------------------------------------
    \12\Sec. 408(d)(8). The exclusion does not apply to distributions 
from employer-sponsored retirement plans, including SIMPLE IRAs and 
simplified employee pensions (``SEPs'').
---------------------------------------------------------------------------
    A qualified charitable distribution is any distribution 
from an IRA directly by the IRA trustee to an organization 
described in section 170(b)(1)(A) (generally, public charities) 
other than a supporting organization (as described in section 
509(a)(3)) or a donor advised fund (as defined in section 
4966(d)(2)). Distributions are eligible for the exclusion only 
if made on or after the date the IRA owner attains age 70\1/2\ 
and only to the extent the distribution would be includible in 
gross income (without regard to this provision).
    The exclusion applies only if a charitable contribution 
deduction for the entire distribution otherwise would be 
allowable (under present law), determined without regard to the 
generally applicable percentage limitations. Thus, for example, 
if the deductible amount is reduced because of a benefit 
received in exchange, or if a deduction is not allowable 
because the donor did not obtain sufficient substantiation, the 
exclusion is not available with respect to any part of the IRA 
distribution.
    If the IRA owner has any IRA that includes nondeductible 
contributions, a special rule applies in determining the 
portion of a distribution that is includible in gross income 
(but for the qualified charitable distribution provision) and 
thus is eligible for qualified charitable distribution 
treatment. Under the special rule, the distribution is treated 
as consisting of income first, up to the aggregate amount that 
would be includible in gross income (but for the qualified 
charitable distribution provision) if the aggregate balance of 
all IRAs having the same owner were distributed during the same 
year. In determining the amount of subsequent IRA distributions 
includible in income, proper adjustments are to be made to 
reflect the amount treated as a qualified charitable 
distribution under the special rule.
    Distributions that are excluded from gross income by reason 
of the qualified charitable distribution provision are not 
taken into account in determining the deduction for charitable 
contributions under section 170.
    Under present law, the exclusion does not apply to 
distributions made in taxable years beginning after December 
31, 2013.

                           REASONS FOR CHANGE

    The Committee believes that facilitating charitable 
contributions from IRAs will increase giving to charitable 
organizations. Therefore, the Committee believes that the 
exclusion for qualified charitable distributions should be 
permanently extended.

                        EXPLANATION OF PROVISION

    The provision reinstates and makes permanent the exclusion 
from gross income for qualified charitable distributions from 
an IRA.

                             EFFECTIVE DATE

    The provision is effective for distributions made in 
taxable years beginning after December 31, 2013.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H.R. 4619, the Permanent IRA Charitable 
Contribution Act of 2014, on May 29, 2014.
    The bill, H.R. 4619, was ordered favorably reported as 
amended by a roll call vote of 23 yeas to 14 nays (with a 
quorum being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea      Nay     Present     Representative       Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Camp.......................        X   .......  .........  Mr. Levin.........  ........        X   .........
Mr. Johnson....................        X   .......  .........  Mr. Rangel........  ........        X   .........
Mr. Brady......................        X   .......  .........  Mr. McDermott.....  ........        X   .........
Mr. Ryan.......................        X   .......  .........  Mr. Lewis.........  ........  ........  .........
Mr. Nunes......................        X   .......  .........  Mr. Neal..........  ........        X   .........
Mr. Tiberi.....................        X   .......  .........  Mr. Becerra.......  ........        X   .........
Mr. Reichert...................        X   .......  .........  Mr. Doggett.......  ........        X   .........
Mr. Boustany...................        X   .......  .........  Mr. Thompson......  ........        X   .........
Mr. Roskam.....................        X   .......  .........  Mr. Larson........  ........        X   .........
Mr. Gerlach....................        X   .......  .........  Mr. Blumenauer....  ........        X   .........
Mr. Price......................        X   .......  .........  Mr. Kind..........  ........        X   .........
Mr. Buchanan...................        X   .......  .........  Mr. Pascrell......  ........  ........  .........
Mr. Smith......................        X   .......  .........  Mr. Crowley.......  ........        X   .........
Mr. Schock.....................        X   .......  .........  Ms. Schwartz......  ........        X   .........
Ms. Jenkins....................        X   .......  .........  Mr. Davis.........  ........        X   .........
Mr. Paulsen....................        X   .......  .........  Ms. Sanchez.......  ........        X   .........
Mr. Marchant...................        X   .......  .........
Ms. Black......................        X   .......  .........
Mr. Reed.......................        X   .......  .........
Mr. Young......................        X   .......  .........
Mr. Kelly......................        X   .......  .........
Mr. Griffin....................        X   .......  .........
Mr. Renacci....................        X   .......  .........
----------------------------------------------------------------------------------------------------------------

                     IV. BUDGET EFFECTS OF THE BILL


               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill, H.R. 4619, as 
reported.
    The bill, as reported, is estimated to have the following 
effect on Federal budget receipts for fiscal years 2014-2024:

                                                                      FISCAL YEARS
                                                                  [Millions of Dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                   2014                      2015     2016     2017     2018     2019     2020     2021     2022     2023     2024     2014-19   2014-24
--------------------------------------------------------------------------------------------------------------------------------------------------------
-124                                          -691     -659     -702     -775     -813     -855     -895     -933     -967    -1,001    -3,764    -8,415
--------------------------------------------------------------------------------------------------------------------------------------------------------

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority. The 
Committee further states that the revenue-reducing tax 
provisions involve increased tax expenditures. (See amounts in 
table in Part IV.A., above.)

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 5, 2014.
Hon. Dave Camp,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4619, the 
Permanent IRA Charitable Contribution Act of 2014.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Logan 
Timmerhoff.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 4619--Permanent IRA Charitable Contribution Act of 2014

    H.R. 4619 would amend the Internal Revenue Code to 
reinstate and make permanent a rule that had allowed eligible 
taxpayers to exclude from taxable income certain distributions 
from their individual retirement accounts (IRAs) that were 
directly donated to qualifying charities. Under current law, 
the rule expired for distributions made after December 31, 
2013. The tax treatment under H.R. 4619 would apply to 
taxpayers over the age of 70 years and six months, and would be 
limited to $100,000 per taxpayer for any year. Qualified 
donations would include those to most public charities that 
would be deductible for taxpayers who itemize their income tax 
deductions. Taxpayers who excluded amounts from taxable income 
as a result of the bill would not be allowed to also claim an 
itemized deduction for such amounts. Amounts donated from IRAs 
would count for purposes of required minimum distributions.
    The staff of the Joint Committee on Taxation (JCT) 
estimates that enacting H.R. 4619 would reduce revenues, thus 
increasing federal budget deficits, by about $8.4 billion over 
the 2014-2024 period.
    The Statutory Pay-As-You-Go Act of 2010 establishes budget-
reporting and enforcement procedures for legislation affecting 
direct spending and revenues. Enacting H.R. 4619 would result 
in revenue losses in each year beginning in 2014. The estimated 
increases in the deficit are shown in the following table.
    JCT has determined that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Logan 
Timmerhoff. The estimate was approved by David Weiner, 
Assistant Director for Tax Analysis.

            CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4619, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON WAYS AND MEANS ON MAY 29, 2014
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   By fiscal year, in millions of dollars--
                                                     ---------------------------------------------------------------------------------------------------
                                                       2014   2015   2016   2017   2018   2019   2020   2021   2022   2023   2024   2014-2019  2014-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICITStatutory Pay-As-You-Go Effects.....................    124    691    659    702    775    813    855    895    933    967   1,001     3,764     8,415
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Staff of the Joint Committee on Taxation.

                    D. Macroeconomic Impact Analysis

    In compliance with clause 3(h)(2) of rule XIII of the Rules 
of the House of Representatives, the following statement is 
made by the Joint Committee on Taxation with respect to the 
provisions of the bill amending the Internal Revenue Code of 
1986: the effects of the bill on economic activity are so small 
as to be incalculable within the context of a model of the 
aggregate economy.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives (relating to oversight findings), 
the Committee advises that it was as a result of the 
Committee's review of the provisions of H.R. 4619 that the 
Committee concluded that it is appropriate to report the bill, 
as amended, favorably to the House of Representatives with the 
recommendation that the bill do pass.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill contains no measure that authorizes funding, so no 
statement of general performance goals and objectives for which 
any measure authorizes funding is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

                D. Applicability of House Rule XXI 5(b)

    Rule XXI 5(b) of the Rules of the House of Representatives 
provides, in part, that ``A bill or joint resolution, 
amendment, or conference report carrying a Federal income tax 
rate increase may not be considered as passed or agreed to 
unless so determined by a vote of not less than three-fifths of 
the Members voting, a quorum being present.'' The Committee has 
carefully reviewed the bill, and states that the bill does not 
involve any Federal income tax rate increases within the 
meaning of the rule.

                       E. Tax Complexity Analysis

    Section 4022(b) of the Internal Revenue Service 
Restructuring and Reform Act of 1998 (the ``IRS Reform Act'') 
requires the staff of the Joint Committee on Taxation (in 
consultation with the Internal Revenue Service and the Treasury 
Department) to provide a tax complexity analysis. The 
complexity analysis is required for all legislation reported by 
the Senate Committee on Finance, the House Committee on Ways 
and Means, or any committee of conference if the legislation 
includes a provision that directly or indirectly amends the 
Internal Revenue Code and has widespread applicability to 
individuals or small businesses.
    Pursuant to clause 3(h)(1) of rule XIII of the Rules of the 
House of Representatives, the staff of the Joint Committee on 
Taxation has determined that a complexity analysis is not 
required under section 4022(b) of the IRS Reform Act because 
the bill contains no provisions that amend the Code and that 
have ``widespread applicability'' to individuals or small 
businesses, within the meaning of the rule.

  F. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   G. Duplication of Federal Programs

    In compliance with Sec. 3(j)(2) of H. Res. 5 (113th 
Congress), the Committee states that no provision of the bill 
establishes or reauthorizes: (1) a program of the Federal 
Government known to be duplicative of another Federal program, 
(2) a program included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139, or (3) a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance, published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169).

                 H. Disclosure of Directed Rule Makings

    In compliance with Sec. 3(k) of H. Res. 5 (113th Congress), 
the following statement is made concerning directed rule 
makings: The Committee estimates that the bill requires no 
directed rule makings within the meaning of such section.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

INTERNAL REVENUE CODE OF 1986

           *       *       *       *       *       *       *



Subtitle A--Income Taxes

           *       *       *       *       *       *       *


CHAPTER 1--NORMAL TAXES AND SURTAXES

           *       *       *       *       *       *       *


Subchapter D--Deferred Compensation, Etc

           *       *       *       *       *       *       *


PART I--PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC

           *       *       *       *       *       *       *



Subpart A--General Rule

           *       *       *       *       *       *       *



SEC. 408. INDIVIDUAL RETIREMENT ACCOUNTS.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Tax Treatment of Distributions.--
          (1) * * *

           *       *       *       *       *       *       *

          (8) Distributions for charitable purposes.--
                  (A) * * *

           *       *       *       *       *       *       *

                  [(F) Termination.--This paragraph shall not 
                apply to distributions made in taxable years 
                beginning after December 31, 2013.]

           *       *       *       *       *       *       *


                         VII. DISSENTING VIEWS

    The six bills approved by the Republicans at the markup 
would add $304 billion to the deficit. Combined with the $310 
billion that the six bills approved by Republicans on the 
Committee in April added to the deficit, Republicans have added 
$614 billion to the deficit in two short months--and there does 
not appear to be an end in sight. Even though some of these 
bills were introduced individually with some bipartisan 
support, the opposition to these bills was based on the 
position that these tax provisions should not be made permanent 
by adding to the deficit without any revenue offset.
    To put the combined cost ($614 billion) into context, it is 
25 percent more than the entire projected federal deficit this 
year and $86 billion more than total non-defense domestic 
discretionary spending (e.g., medical research, education, 
veterans' pensions and health care, transportation, etc.) will 
be in 2014. It is almost seven times what we spend annually on 
education, job training, and social services. It is ten times 
more than we spend on veterans. And, it is eleven times more 
than we spend on medical research and public health.
    Public charities and private foundations serve an important 
role in our society. We all support the good works of the 
charitable community and strive to provide charities with the 
resources they need to carry out their charitable mission. The 
markup was not to debate the good works of charities across 
this country, or the merits of H.R. 4619 which makes permanent 
the IRA charitable rollover provision.
    We found it hypocritical that the Republicans would make 
permanent a provision that was specifically permitted to expire 
in Chairman Camp's Tax Reform Act of 2014 discussion draft.
    We also found it hypocritical that, four months ago, 
Republicans let emergency unemployment insurance expire for 
more than 1.3 million Americans by arguing that an adequate 
offset had yet to be proposed. In early April, the Senate came 
to a bipartisan agreement on an offset after months of 
painstaking negotiations. Yet House Republicans still refuse to 
act.
    Finally, we also opposed the manner in which Republicans 
were proceeding--selecting 10 to make permanent without any 
offset from the approximately 60 tax provisions that expired 
last year. This approach was both fiscally irresponsible and 
fundamentally hypocritical.
    The consideration of this bill should have been part of the 
consideration of all the expired tax provisions commonly 
referred to as ``tax extenders.'' The Republicans did not take 
up other tax extenders that also are important to Democratic 
Committee Members. Left to an uncertain fate are provisions 
like the Work Opportunity Tax Credit, the New Markets Tax 
Credit, and the renewable energy tax credits, as well as the 
long-term status of the Earned Income Tax Credit, the Child Tax 
Credit, and the American Opportunity Tax Credit.
            Sincerely,
                                           Sander M. Levin,
                                                    Ranking Member.

                                  
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