"With so many struggling in our sluggish economy, it is time to reinvigorate America's spirit of unity and community while lending a helping hand to our neighbors in their time of need," said Smith. "By encouraging individuals to give, we empower charitable organizations to change lives for the better."
There is a current charity crisis in the U.S. due to increased social needs and lower charitable giving levels related to the economic downturn. The CARE Act provides a number of tax incentives to encourage charitable giving, including deducting a portion of contributions for individuals who do not itemize, tax free contributions from Individual Retirement Accounts, and incentives for donations of food and books. It also provides 300,000 low-income, working Americans the opportunity to build assets through matched savings accounts to purchase a home, expand educational opportunity, or start a small business. In addition to the incentives for giving, the legislation provides additional resources for organizations serving those in need.
"The CARE Act helps communities and faith-based groups reach out to improve the plight of the needy in Oregon and across the nation," said Smith. "It gives a vital boost to the charitable giving community and will have an immediate impact in the lives of the less fortunate."
During consideration of the CARE Act, Smith offered an amendment to allow non-profit organizations to issue tax-exempt bonds to finance the purchase of forested lands so that the land can be managed for conservation purposes with a limited amount of harvest. Smith received an assurance from Finance Committee Chairman Chuck Grassley (R-IA) that the amendment would be included when the bill is considered by the full Senate.
The Finance Committee also passed another Smith-backed bill, the Armed Services Tax Fairness Act of 2003 to improve tax equity for members of the military.
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