 |
 |
| home > legislative update > July 2006
July 2006 | Legislative Status ACR successfully fought back yet another effort to increase excise taxes on private foundations. The Senate Finance Committee considered legislation to repeal the long-standing telephone excise tax, and sought to include language to expand the private foundation excise tax base to help fund the repeal. Such a provision would have overturned the decision in Zemurray Foundation v. U.S., Fifth Circuit, 1982) which keeps tax-exempt use assets TAX EXEMPT. Under the provision, vital funds would have been siphoned away from charitable use and sent to the general Treasury for non-charitable use. As a result of overwhelming opposition by the charitable community, including the Council on Foundations, Independent Sector and the Americans for the Arts; the provision was dropped from consideration prior to the Senate Finance Committee mark up on June 28, 2006. Ultimately, the telephone tax repeal bill that was voted out of the Senate Finance Committee did include some charitable provisions added in the mark up, many of which were included in Senator Rick Santorum’s original CARE Act. The measure now awaits floor consideration by the full Senate, which is uncertain. So, what happens next? The Alliance for Charitable Reform is closely watching the progress of other possible vehicles for so-called charitable reform. We continue to watch current negotiations on a “trailer” tax bill, which could still include charitable provisions. Chairman Grassley could demand inclusion of charitable provisions in this “trailer” bill which must be passed by the end of the year. The trailer bill is likely to be attached the pension bill which is currently under negotiation. However, as major issues in the pension bill are yet unresolved, progress on the trailer bill remains stalled. Having failed to resolve outstanding issues in the pension bill before the July 4th Congressional recess, negotiators are expected to resume discussions when Congress returns in July.
|
| Legislative Updates |
 |