Statement Of Senator Patrick Leahy
On Senate Passage
Of The Charity, Aid, Recovery and Empowerment Act (CARE) Act
April 9, 2003

Mr. President, I rise today in support of the Charity Aid, Recovery, and Empowerment (CARE) Act of 2003.  The tax provisions in the CARE Act will encourage increased giving to charitable organizations across the country.  In community after community, our charitable organizations have seen donations drop off significantly because of the sluggish economy.

The CARE Act would allow taxpayers who do not itemize tax deductions to write off a portion of their charitable donations for two years.  Non-itemizers would be limited to $250 for individuals and $500 for couples filing joint returns.  The bill would also permit tax-free distributions from IRAs for charitable purposes and would allow enhanced deductions for contributions of food, books, computers and conservation easements.  It is important to note that the $13.1 billion in tax allowances in the CARE Act are fully offset by tax shelter legislation that would impose stiff penalties on those who try to hide assets from the IRS.  I am also pleased that the bill reported by the Senate Finance Committee on February 5 contains none of the controversial “charitable choice” provisions that hindered its passage in the last Congress. 

There are several bipartisan and non-controversial tax incentive provisions in the CARE Act that I have supported as stand-alone bills, including the Artist-Museum Partnership Act, S. 287, that I co-authored with Senator Bennett, and the Good Samaritan Hunger Relief Act, S. 85, that I co-authored with Senator Lugar. 

Senator Bennett and I introduced the Artist-Museum Partnership Act to enable our country to keep cherished art works in the United States and to preserve them in our public institutions, while erasing an inequity in our tax code that now serves as a disincentive for artists to donate their works to museums and libraries.  Under current law, artists who donate self-created works are only able to deduct the cost of supplies such as canvas, pen, paper and ink -- a sum that does not come close to the works’ true values.  This is unfair to artists and it hurts museums and libraries – large and small – that are dedicated to preserving works for posterity.  Our bill would allow artists, writers and composers who donate works to museums and libraries to take a tax deduction equal to the fair-market value of the work. 

In my state of Vermont, we are incredibly proud of the great works produced by hundreds of local artists who choose to live and work in the Green Mountain State.  Displaying their creations in museums and libraries helps develop a sense of pride among Vermonters and strengthens a bond with Vermont, its landscape, its beauty and its cultural heritage.  Anyone who has gained a greater understanding of both the artist and the subject by contemplating a painting in a museum or examining an original manuscript or composition knows the tremendous value of these works.  I would like to see more of them, not fewer, preserved in Vermont and across the country.

I would like to thank Senators Allen, Bingaman, Cantwell, Chafee, Clinton, Cochran, Daschle, Dodd, Durbin, Feinstein, Graham of Florida, Jeffords, Johnson, Kennedy, Kerry, Lieberman, Lincoln, Miller, Stevens and Warner for cosponsoring our bill. 

The Good Samaritan Hunger Relief Act that Senator Lugar and I introduced will strengthen the productive partnership between businesses and organizations that are on the front lines in working to alleviate hunger.  Our bill will mean greater donations to food banks, soup kitchens and other hunger relief charities, and that means it will tangibly help local communities and organizations which, day after day, are defending American families and children against the scourge of hunger and malnutrition.  This will help recover more of the America’s bounty that otherwise would be wasted to help families that are struggling.   

Under current tax law, the deduction allowed for donated food does not cover expenses incurred by the business.  In many cases, this means that it is cheaper for a business or farmer to throw away leftover food instead of donating it to the hungry.  Our legislation will make it easier for restaurants, food processors and farmers to contribute food to food banks, pantries and homeless shelters by allowing the deduction of the full market value of food donated. 

Over the years, our legislation has received the endorsements of a wide range of hunger-relief and community organizations, including America’s Second Harvest Food Banks, the American Farm Bureau Federation, the California Emergency Foodlink, the Council of Chain Restaurants, the Grocery Manufacturers of America, Lighthouse Ministries Inc., the National Restaurant Association and the Salvation Army.  I would like to thank Senators Akaka, Allen, Bayh, Bond, Cochran, Dayton, DeWine, Dodd, Durbin, Ensign, Fitzgerald, Harkin, Kerry, Landrieu, Miller, Roberts, Santorum, Schumer and Smith for also cosponsoring our bill.

I want to thank the Chairman and Ranking Member of the Senate Finance Committee for including the Artist-Museum Partnership Act and the Good Samaritan Hunger Relief Act in the CARE Act.  As we pass this important legislation today, I look forward to working with my colleagues to ensure that the bipartisan compromises contained in the Senate bill are preserved.

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