Statement of the Hon. J.C. Watts, Jr., a Representative in Congress from the State of Oklahoma

Testimony Before the Subcommittee on Human Resources and
Subcommittee on Select Revenue Measures
of the House Committee on Ways and Means

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

June 14, 2001

Thank you for holding these important hearings today on H.R. 7, the Community Solutions Act. It is a great privilege to be here with my friend and colleague, Tony Hall, who has sponsored this bill with me. Tony has a long and respected history of reaching out to the underprivileged and seeking solutions to poverty and hunger in America and around the world, so I am delighted to work with him on this initiative.

Ladies and Gentlemen, last year the Congress passed the Community Renewal Act that I had cosponsored with Congressmen Danny Davis of Chicago and Jim Talent of St. Louis. We introduced that legislation and fought for its passage because, after a decade of uninterrupted growth and prosperity across the nation, there were still communities in America that had been bypassed by the so-called New Economy.

H.R. 7, the Community Solutions Act, moves another step forward to fulfilling the goals and incentives of the Community Renewal Act. This legislation is crafted to increase charitable giving, to create asset-building financial structures for the working poor, and to form new partnerships between the government and community and faith-based organizations in helping the poor.

The Community Solutions Act will strengthen our ability to serve the poor and the homeless, the addicted and the hungry, the unemployed, victims of violence and all those we are called upon to help.

Our nation is blessed with tens of thousands of devoted individuals who work with the poor on a daily basis through community and faith-based organizations. They work in the neighborhoods, on the street corners, in the shelters and the soup kitchens, shirtsleeves rolled up, literally extending a helping hand to those on their doorsteps who have lost hope.

They operate thousands of centers throughout the country which provide services to the underprivileged. In many neighborhoods these centers are centers of hope in an otherwise desolate landscape. We are proud to have the endorsement of such groups as Habitat for Humanity and the Salvation Army who are perhaps the most recognizable of the thousands of groups who provide these services.

The Community Solutions Act invites these courageous and selfless men and women to partner with the government and help us find those in need and deliver vital services to them.

The legislation also provides important tax incentives to increase charitable giving by allowing non-itemizers to deduct charitable contributions – a bipartisan proposal that originated with Congressman Phil Crane.

A charitable deduction for taxpayers who do not itemize seems not only good public policy but also a matter of simple fairness for more moderate income Americans who use the standard deduction but contribute to charities and receive no tax relief for doing so. The Community Solutions Act will give these individuals equal standing with wealthier taxpayers.

Another important provision of H.R. 7 is the creation of Individual Development Accounts that will help low-income families accumulate assets. It is only by building assets that individuals can establish their economic independence and work toward a better future for themselves and for their children.

This is a critical stepping stone for the working poor to escape poverty, and these IDAs will allow these individuals to build the funds they need to buy a first home, to start or expand a business or to pay tuition expenses.

Today’s witness list is impressive, and better than I, they can tell you how this legislation will help them and help society fulfill its commitments and its duty to guarantee every American an equal opportunity to succeed. Mr. Chairmen, thank you for holding these hearings today and thank you for your support.