May 12, 1976
Page 13590
Mr. MUSKIE. Mr. President, I want to add my support to the amendment submitted today by the distinguished senior Senator f from Connecticut. This amendment to H.R. 10612, the Tax Reform Act of 1976, is the culmination of several years of effort to establish more specific guidelines for the activities of public charities involved in the legislative process.
I first introduced a proposal of this kind in 1971 when presented with studies of the uneven application of our tax laws relating to public charities. That proposal was patterned after a resolution adopted by the American Bar Association. Again in the 93d Congress, I was joined by Senators SCOTT, NELSON, DOLE, and 35 other Members of the Senate in an effort to define the amount of legislative activity in which those charities could be involved.
This year there is a total of 46 Senators who have added their names in support of S. 2832, which Senators NELSON, SCOTT, DOLE, and I introduced in December and which, like the House counterpart offered by Representative CONABLE, proposes necessary changes in the Internal Revenue Code.
Under current law, publicly supported charities may lose their sources of revenue from tax deductible contributions if a substantial part of their activities involve efforts to influence legislation. This vague standard, set forth in section 501(c) (3) of the Code, has unpredictably, unreasonably, and unnecessarily restricted the worthwhile and legitimate activities of these organizations.
By imposing an uncertain and unclear measure on the scope of an institution's activities, they are likely to play safe and not do anything that might jeopardize their financial support. The code, in effect, has a chilling effect on the exercise of their first amendment rights, and as a result the Congress and the public lose valuable sources of information.
The new proposal offers a workable solution to this problem. It follows the fundamental principles of S. 2832 and includes innovative technical and substantive changes which respond to earlier questions.
I am very hopeful that this effort by my Senate colleagues who serve on the Finance Committee will further early consideration of these long overdue changes.
It is important to note the work which has been devoted to this revised draft by the staff of the Joint Committee on Internal Revenue Taxation, representatives of the Treasury Department, and of the Coalition of Concerned Charities.
I am grateful for their efforts and look forward to seeing a proposal presented in the near future for full Senate consideration.
Again, Mr. President, I want to thank my colleague, Senator RIBICOFF, and the other members of the Finance Committee who are working on behalf of this proposal, Senators NELSON, PACKWOOD, HASKELL, and DOLE, and hope that their support for this effort proves successful.