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Friday, March 30, 2001 Columns
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Allowing Tax Deductions for All Charitable Contributions Fair and Fiscally Sound
 

Each year millions of Americans dig deep and donate billions of dollars to non-profit charities and religious groups. Unfortunately, 70% of those families do not receive the tax deductions they deserve for their charitable contributions.

Families who contribute and do not itemize on their tax returns are denied hundreds and perhaps thousands of dollars in deductions that ultimately would lower their tax bill.

All that would change if Congress passes a bill that would allow families who do not itemize to deduct their charitable contributions. President Bush also supports this approach and has made it a top legislative priority.

The tax code now discriminates against filers that only take a standard deduction. Filers that itemize can claim a portion of their contributions as a tax deduction. I believe that families that do not itemize should be allowed a tax deduction for charitable contributions. In addition, allowing a deduction is certain to increase contributions to religious groups and charities.

I’m pleased to join President Bush in supporting a fair and fiscally sound approach to stimulating contributions to churches and other non-profit organizations.

In 1999 charitable giving was $190 billion, an increase of nine percent over the previous year, according to figures from President Bush’s Blueprint for New Beginnings.

President Bush’s common sense initiatives include:

Expanding the charitable tax deduction to the 70 percent of tax filers who do not itemize Permitting charitable contributions from IRAs without penalty Promoting a tax credit against state income and other taxes for contributions to charities addressing poverty. Corporations and businesses also represent a source of contributions for charitable groups. This participation can be encouraged by promoting an extension of charitable State tax credits to corporations, raising the cap on corporate charitable deductions and providing liability protection for corporations who donate equipment, vehicles, facilities and other material contributions.

Congress should quickly take up this legislation and pass a bill that President Bush will sign into law. Central Texas families, religious groups and charities will be the big winner when fair and fiscally responsible tax rules are in place.

 
     
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