Policy Update

Independent Sector Policy Update
August 5, 2005
 

Congress Adjourned Until September August Recess Packets Ways and Means Subcommittee Hears Members Ideas on Tax Reform

Other Policy Issues Federal Bill Tracker Nonprofit State Legislation Tracker (PDF) (IS members only) Past Policy Updates

Congress Adjourned Until September
Members of Congress left Washington last week, postponing until September action on a few issues of interest to the nonprofit sector. Senate Finance Committee Chairman Charles Grassley (R-IA) said that the committee will introduce a bill to reform charitable organizations in September. His original plan was to propose legislation this summer.

Also postponed until September is a Senate vote on the estate tax. Senate Majority Leader Bill First (R-TN) plans to bring estate tax legislation to the floor for a vote when the Senate returns from its August recess, though it does not seem likely that he has the 60 votes necessary to proceed on a full repeal.

August Recess Packets
August provides a perfect opportunity to talk to members of Congress and their staffs about the issues above and IRA charitable rollover legislation. IS has prepared a few fact sheets that can be downloaded from our website to help you prepare for your meetings and letters:

1. Fact Sheet on Charitable Reform (PDF), an overview of recommendations of the Panel on the Nonprofit Sector;
2. Fact sheet on the Public Good IRA Rollover Act (PDF) (HR 1607/ S1366), and draft letter (PDF) to send to your Senators and Representative to encourage cosponsors; and,
3. Fact sheet on the Estate Tax (PDF).

We have also posted a recent CRS report (PDF) that summarizes proposals of the Joint Committee on Taxation with respect to certain charitable contributions. The report (RS22213) briefly describes the January 2005 JCT proposals for donations of conservation easements, clothing and household items, and appreciated property.

Ways and Means Subcommittee Hears Members Ideas on Tax Reform
The House Ways and Means Select Revenues Measures Subcommittee heard testimony on July 28 from seven Members of Congress on ways to reform the tax code. Subcommittee Chairman Dave Camp (R-MI) held the hearing to examine proposals that satisfy the objectives of “fair, simple, and growth-oriented” tax reform. The plans presented included a flat tax proposal by Rep. Burgess (R-TX); a national sales tax by Rep. Linder (R-GA); elimination of the alternative minimum tax by Rep. Neal (D-MA); and simplification proposals by Rep. Emanuel (D-IL) and Rep. Kucinich (D-OH).

Rep. Philip English (R-PA) said he will be reintroducing his hybrid consumption and income tax plan, the Simplified USA Tax Act, which retains mortgage interest and charitable contribution deductions. Rep. Timothy Bishop (D-NY) presented a bill to permit farm owners to defer federal estate taxes as long as they maintain their land as “open space,” and a second bill to clarify the tax treatment of conservation easements purchases under installment agreements.

The subcommittee will accept written submission for the hearing record until close of business on August 31, 2005. The testimony is posted on the subcommittee website, as well as instructions for submissions to the record.

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