GALESBURG, Ill., Feb. 15, 2013 /PRNewswire/ -- Gary C. Smith, president and chief executive officer of the National Association for the Exchange of Industrial Resources (NAEIR), www.NAEIR.org, in response to an invitation extended by Congressman Dave Camp (R-MI), chairman of the Committee on Ways and Means, submitted comments this week for the hearing on Tax Reform and Charitable Contributions held in Washington, D.C.
In his testimony, Smith urged Congress to secure the future of the charitable contribution and pursue fairness and parity in tax treatment of America's charities and small businesses. Over the past several months, tens of thousands of charities and citizens have urged Congress to avoid jeopardizing the future of the nonprofit sector in considering any proposals that would impose caps or limits on the charitable deduction.
Congress now has an opportunity to help charitable organizations and small businesses across the country with the Charitable Contribution Parity & Enhancement Act, H.R. 2592, which was introduced last year by Congressman Aaron Schock (R-IL). If passed, the bill would provide tax incentives to over 3 million of the nation's small businesses—most of which are S corporations—to donate their excess inventory to struggling charities throughout the country. The legislation would make available hundreds of millions of dollars in excess inventory to charities across the United States and would correct a long-standing disparity between tax benefits offered to large corporations versus small businesses.
"The various proposals currently being considered to remove or cap the charitable deduction would be ill-advised," Smith said in his testimony. "Adopting any one of these proposals, in whole or in part, would only serve to weaken our nation's charities. Additionally, it is of equal importance that we continue to look for ways to harmonize the differences that exist in the tax code when it comes to charitable incentives for larger corporations versus those of smaller businesses."