Tax Credit/Deduction for Political Contributions Proposed
Posted at 4:02 p.m. on Nov. 21, 2013
Not many people give political contributions to campaigns, but when they do give, those giving $200 or less are overshadowed by those giving larger amounts, who account for over 60% of the $4.25 billion contributed to federal campaigns.
In an effort to encourage more small dollar contributions from individuals, Rep. Tom Petri, R-Wis., introduced on Thursday the Citizens Involvement in Campaigns (CIVIC) Act, which would restore the tax credit and deduction for contributions up to $200 and $600, respectively. Those tax credits and deductions were in place from 1972 through 1986.
Under the bill (H.R. 3586), small donors would be eligible for a federal tax credit of up to $200 ($400 on a joint return) for contributions to candidates for a federal office or to a national political party. Alternatively, a campaign contributor could elect a tax deduction of up to $600 ($1,200 on a joint return).