Opening Statement of the Hon. Jim McCrery, a Representative in Congress from the State of Louisiana,
 and Chairman, Subcommittee on Select Revenue Measures

Hearing on H.R. 7, the "Community Solutions Act of 2001"

June 14, 2001

Good morning. Today, we conclude a busy week for the Subcommittee on Select Revenue Measures by joining with Chairman Herger, Ranking Member Cardin, and our colleagues on the Human Resources Subcommittee to examine the role the tax code can play in encouraging more charitable giving.

I want to welcome a fellow Louisianan to today's hearing. Troy Yopp is former Chairman of the Board of Governors of the Shriners Hospital for Children in Shreveport and will provide us with a valuable perspective on this debate. The Shriners' long tradition of providing free medical care to children began in 1922, when they opened their first hospital in Shreveport.

Charitable groups like the Shriners strengthen our communities -- they educate our children; they feed the hungry and shelter the homeless; they heal the sick and assist those struggling with the demons of addiction. They nourish our souls, individually through churches and temples and collectively through their contributions to small towns and big cities across America.

Meeting these varied needs is a monumental challenge; fortunately Americans respond by generously donating their time and money to help those in need. According to Independent Sector, nearly 70 percent of all American households make charitable contributions each year to support local charities.

One of the key provisions in both the President's budget and in the Watts-Hall bill would allow a deduction for non-itemizers. As my colleagues know, the tax code included a similar allowance in the early 1980s. I am hoping the testimony today will enlighten us as to how such a deduction can work as well as help us guard against any pitfalls it may present.

Another proposal to be featured today would make it easier for individuals to donate IRA assets to charity. Instead of receiving money from an IRA account as income, the Watts-Hall bill would exclude from income IRA distributions made directly to a charity by those over the age of 59 ½.

While they have received less attention, several other important proposals will come before us today, including raising the limit on the amount of charitable contributions which can be made by a business and a proposal to encourage businesses to donate excess food inventory.

We will also hear from our colleague, Congressman Cliff Stearns, about a tax levied on private foundations, and have an opportunity to consider whether it is reducing the foundations' ability to serve their communities by unnecessarily sending dollars to Washington. Finally, on the tax side, we will hear about a provision in the Watts-Hall bill which would help low-income individuals save and invest through matching contributions.

In addition, this joint hearing will address the non-tax issues within the jurisdiction of the Human Resources Subcommittee, specifically the Charitable Choice provisions of H.R. 7. As a member of that Subcommittee, I am eager to learn more about how charitable choice could increase federal funding to religious organizations which provide critical social services.

At the same time, I look forward to learning more about the questions which might arise when government assistance is provided to religious organizations. I am particularly interested in learning whether the legislation does or should alter the general exemption religious organizations have from rules prohibiting employment discrimination.

The issues are indeed complex, but we have a distinguished group of witnesses, and I look forward to being enlightened by them.

With that, I yield to my friend, the Ranking Minority Member, Mr. McNulty, for whatever opening comments he would like to make.