January 24, 2003

BETTER CAMPAIGN REFORM

Reformers reacted with surprise and delight last year when Congress approved the McCain-Feingold campaign finance reform bill, and again when the President signed it into law on March 27.

The new law will curb some of the worst abuses of our current campaign system, such as the unlimited soft money loophole. Important provisions, however, face stiff court challenges and may be ruled unconstitutional.

Whatever the outcome, the reality is that special interests and high-income donors will continue to have a disproportionate level of influence in our political system. We cannot stop now, 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 to encourage - rather than restrict - widespread public participation in campaigns. Toward this end, I have been advocating tax credits and deductions for small political contributions for several years.

On January 7, I introduced the latest version of my proposal, the Citizens Involvement in Campaigns (CIVIC) Act (H.R. 157), which would broaden the base of political contributors by providing a 100 percent tax credit for contributions of up to $200 to federal candidates - or, alternatively, a tax deduction of up to $600 for contributions of up to $600. Both limits would be doubled on joint returns.

It's a fact of life that it's expensive to run for office, but if we can successfully encourage a lot of people to contribute a little, candidates will become less reliant on big donors.

At the same time, regular citizens who have taken the step of contributing may find that they want to get involved more actively in ways that shift the focus away from radio and TV ads and back to the streets, homes and gathering places where deciding who to elect used to be more of a community activity. By strengthening grassroots campaigns we can reduce the burdens and potential improprieties that accompany the money chase.

Tax credits for campaign contributions is not a new idea. A similar federal tax credit was in place from 1972 to 1986. Currently, six states (Oregon, Minnesota, Ohio, Virginia, Arkansas, and Arizona) offer their own tax credits for political contributions.

Some reformers advocate public financing of campaigns, but most people object to the idea that their tax payments could be used to elect people they oppose. I think my approach is far better, as people would be asked to aid the campaigns only of those politicians they actually like.