Author: MIL-OSI Publisher

Source: United States Senator for Maine Angus King

WASHINGTON, D.C. – U.S. Senators Angus King (I-Maine) and Chuck Grassley (R-Iowa) are introducing bipartisan legislation to reform tax laws that cover charitable donations, so that philanthropic funds are made available to working charities within a reasonable time period. The Accelerating Charitable Efforts (ACE) Act would establish a timeline for donations to working charities from donor-advised funds (DAFs), which currently have more than $140 billion set aside for future charitable gifts, but no requirement to distribute these funds. Senators King and Grassley’s legislation would reform the rules surrounding DAFs, ensuring that these assets would be distributed within reasonable timeframes and providing incentives to speed up donation timelines. The legislation would also reform regulations for private foundations, ensuring that they cannot meet existing payout requirements through payment of administrative expenses for a donor’s family or through donations to DAFs.

“America’s philanthropic sector is an unquestioned force for good across the globe, investing critically-needed resources in charities working to improve life for those in need,” said Senator King. “These benefits are why the federal government offers tax incentives to Americans who give back – but in order to ensure that these funds are doing the most possible good, we must reform the rules that govern some charitable donations. Under current rules, donor-advised funds and private foundations allow some to receive tax breaks for donations that never actually reach working charities. The ACE Act will clear up those gray areas, and ensure that charitable contributions will swiftly reach the worthy organizations doing good in communities throughout the country and all over the world.”

“Working charities do so much good in our country and abroad, and they operate on the good will and donations of those who can give. That’s why our tax code encourages giving to charity,” said Senator Grassley. “But charitable dollars ought to be doing the good they were intended for, not sitting stagnant to provide tax advantages for some and management fees for others. The reform measures we are putting forward will ensure that the incentives for charitable giving actually result in money going to charities. I appreciate Senator King’s leadership in this effort and hope more of our colleagues, from both sides of the aisle, will join us.”

“The critical role that charities play in Maine and communities across the country has never been more evident than in the past year,” said Mark Swann, Executive Director of Preble Street. “And yet, while these organizations change and save lives, thousands are at risk of closing. Now more than ever, Congress must restore the connection between charitable tax benefits and benefits to charities. Getting more money to our nation’s charities faster means more resources and help for Mainers and Americans in need. We are grateful to Senator Angus King and Senator Chuck Grassley for their leadership in introducing legislation that strengthens and invests in America’s charitable organizations. I urge Congress to swiftly pass the Accelerating Charitable Efforts (ACE) Act.”

Donor-advised funds currently have more than $140 billion set aside for future charitable gifts – but under current tax laws, the funds have no requirement to ever distribute these resources to working charities. Accordingly, DAFs can accept and hold charitable donations that have generated a federal income tax deduction, but never devote the resources to charitable work. The ACE Act will address this problem and speed the provision of money to working charities by replacing existing DAF rules with two new types of DAFs:

·       15-year DAFs: The bill will create a new form of DAF under which a donor would get upfront tax benefits (as under current law), but only if DAF funds are distributed (or advisory privileges are released) within 15 years of the donation. To avoid overvaluations, the income tax deduction for complex assets – such as closely-held or restricted stock – would be the amount of cash made available in DAF accounts as a result of the sale of the asset (instead of the appraised value). 

·       50-Year DAFs: As an alternative, donors who want more than 15 years to distribute their DAF funds will be allowed to elect an “aligned benefit rule.” Under this rule, a DAF donor would continue to receive capital gains and estate tax benefits upon donation, but would not receive the income tax deduction until the donated funds are distributed to the charitable recipient. All funds would be required to be distributed outright to charities no later than 50 years after their donation.

America’s community foundations will receive certain exemptions under this bill to support their place-based, mission-driven work; specifically, the ACE Act will allow any donor to hold up to $1 million in DAF funds at any community foundation without being subject to payout rules. For amounts over $1 million, a donor still can receive up-front tax benefits if the DAF requires a five percent annual payout or if donations must be distributed within 15 years of contribution. The legislation will also reform existing rules governing private foundations, ensuring that these entities cannot meet payout obligations through salaries or travel expenses to a donor’s family members, or through distributions to DAFs.

The full legislative text for the ACE Act can be read HERE. 

Source: United States Senator for Maine Angus King

WASHINGTON, D.C. – U.S. Senator Angus King (I-Maine), co-chair of the Cyberspace Solarium Commission, today applauded the Senate’s 68 to 32 vote to pass the U.S. Innovation and Competition Act, bipartisan legislation that strengthens America’s competitive advantage against China by investing in American technological innovation, strengthening U.S. leadership in scientific research, and supporting the nation’s continued economic prosperity. The bipartisan legislation creates a new Directorate for Technology and Innovation at the National Science Foundation, which will receive $100 billion over five years to support research and innovation in technologies that have geostrategic implications for the United States. The legislation also includes number of provisions led and supported by Senator King, including investments in cybersecurity efforts and programs to support supply chain resiliency.

“America has long been at the forefront of global technological advancements, but that legacy of success does not guarantee that we will own the future,” said Senator King. “To sustain America’s continued economic and scientific leadership, we must keep innovating and making targeted investments in the industries that will define the 21st century economy. As China continues to steal intellectual property and exert control over private industry in an attempt to overtake the United States, this major piece of bipartisan legislation will help America stay on the cutting edge of research, development, and manufacturing.”

In addition to the creation of the Directorate for Technology and Innovation, today’s legislation includes two key Cyberspace Solarium Commission recommendations. The first would codify a “Cyber State of Distress and Cyber Response Fund” in the event of, or in preparation for, a significant cyber incident or series of incidents. This declaration – which Senator King recently outlined in the Wall Street Journal – would enable the Secretary of Homeland Security to coordinate asset preparation, response, and recovery operations, allowing responding Federal agencies to increase, scale up, or augment the capabilities through a cyber response and recovery fund. The second, which was cosponsored by fellow CSC Commissioner Senator Ben Sasse (R-Neb.), would establish a National Risk Management Cycle, requiring a four-year cycle of risk identification and assessment to support critical infrastructure resilience, in order to make sure that our lines of defense are regularly refreshed and strengthened.

As Co-Chair of the Cyberspace Solarium Commission and a member of the Senate Armed Services Committee, Senate Select Committee on Intelligence, and Senate Energy & Natural Resources Committee, Senator King is committed to advancing American competitiveness in 21st century technologies and supporting research and development. Senator King is the co-chair of the Senate Semiconductor Caucus, and last year cosponsored an amendment included in the National Defense Authorization Act that supports the production and development of microelectronics in the United States. Following the passage of this King-backed provision, Senator King joined a bipartisan group urging the Biden Administration to fund to fund initiatives to strengthen semiconductor manufacturing on American soil. He has also cosponsored bipartisan legislation to support U.S. innovation in the race for 5G, introduced legislation to boost research into efforts to reuse and recycle batteries into green energy technologies, and urged top Department of Energy leaders to pursue carbon capture technologies.

Source: United States Senator for Maine Angus King

WASHINGTON, D.C. – U.S. Senator Angus King (I-Maine) today voted to advance the Paycheck Fairness Act, legislation that would strengthen the Equal Pay Act of 1963 in order to help eliminate the gender wage gap, and guarantee that women can challenge pay discrimination and hold employers accountable. Despite Senator King’s vote, the motion to file cloture on the legislation failed to by a vote of 49 to 50. In response to today’s failed vote, Senator King – a cosponsor of the Paycheck Fairness Act – released the following statement:

“This boils down to equal pay for the same day’s hard work. It’s just commonsense that gender should not be taken into account when setting a job’s pay grade – but in 2021, the sad fact is that pay disparities continue to hold American women back,” said Senator King. “It’s far past time to guarantee fair and equal pay to all workers, regardless of gender. I’m disappointed that this commonsense legislation could not muster the necessary votes to proceed, and will continue pushing for my colleagues to reconsider so we can enact the Paycheck Fairness Act into law.”

More than five decades after the passage of the Equal Pay Act of 1963, women on average still make only 82 cents for every dollar earned by men; the gap is even wider for women of color. Compared to white men, African American women are paid 63 cents and Latina women are paid 55 cents. This means that under the same circumstances, a woman working full time year-round would earn $400,000 less than a man over the duration of her career. The wage gap shortchanges women’s ability to save for retirement and reduces their total Social Security and pension benefits, contributing to more older women living in poverty. The Paycheck Fairness Act would seek to confront these systemic challenges by ending the practice of pay secrecy and strengthening the available remedies for wronged employees.

Pay inequity not only affects women – it affects children and families and our economy as a whole. That is because women in this country are the sole or co-breadwinner in half of families with children. Over the past two decades, women make a growing share of the family income in all family types.

Source: United States Senator for Texas Ted Cruz

WASHINGTON, D.C. – U.S. Sens. Ted Cruz (R-Texas), Rick Scott (R-Fla.), Mike Braun (R-Ind.), and Marsha Blackburn (R-Tenn.) today introduced the Federal Debt Emergency Control Act to rein in Washington’s out-of-control spending and provide a concrete path forward to tackle the nation’s nearly $30 trillion debt.
Specifically, the Federal Debt Emergency Control Act:
Requires the Office of Management and Budget to declare a “Federal Debt Emergency” in any fiscal year where the federal debt held by the public in the prior fiscal year exceeded 100% of that year’s Gross Domestic Product (GDP).
This emergency designation would trigger several provisions to help control and reduce the federal debt to levels below 100% of GDP, including:
Terminating any unobligated funding from the American Rescue Plan Act and any previous stimulus bills and sending it back to the Treasury General Fund immediately for deficit reduction.
Requiring all legislation that increases the federal deficit, as determined by the Congressional Budget Office, to carry its offsets. If it does not, the legislation shall be considered out of order and will require at least two-thirds of all Senators to vote to increase federal debt before even considering the bill.
Fast-tracking any legislation that would reduce the federal deficit by at least 5 percent over ten years.

Upon introduction, Sen. Cruz said:
“Congressional Democrats and the Biden administration have embarked on a massive spending spree, placing the burden of the ensuing inflation crisis on American families and small businesses. As our economy fully reopens, continuing to expand our bloated government will do nothing but hurt hard-working Americans who are trying to get back on their feet. I have long fought to rein in big government spending. Sen. Scott’s commonsense legislation would rightfully hold elected officials accountable for voting to increase the deficit during a national debt emergency. I urge my colleagues on both sides of the aisle to take up and pass this bill for a return to fiscal sanity.”
Sen. Scott said:
“America has a debt crisis. Our nation is barreling toward $30 trillion in debt – an unimaginable $233,000 in debt for every family in America. It’s a crisis caused by decades of wasteful and reckless spending by Washington politicians. Now, President Biden is continuing this way of governing by pushing for trillions in wasteful spending, raising the U.S. federal debt by 60% to $39 trillion and the debt-to-GDP ratio to 117% in 2030, the highest level ever recorded in American history. Spending beyond our means has consequences. We’re already seeing rising inflation, which disproportionately hurts the poorest families, like mine growing up.
“That’s why today, I am leading my colleagues in introducing the Federal Debt Emergency Control Act to rein in Washington’s out of control spending. This includes preventing Washington politicians from mindlessly spending by requiring that two-thirds of the Senate vote to increase the debt before approving any bill. I look forward to every fiscally responsible Republican and Democrat working with me to quickly pass the Federal Debt Emergency Control Act.”
Sen. Blackburn said:
“Joe Biden and Washington Democrats are forcing Americans to pay trillions for their radical agenda,” said Senator Blackburn. “Hardworking Tennesseans shouldn’t have to keep emptying their pockets for the left’s wishlist when they are already struggling to keep up with rising inflation rates. The Federal Debt Emergency Control Act (FDECA) serves as a critical piece of legislation to put an end to Democrat’s reckless spending spree.”
Sen. Johnson said:
“Since I began serving in Congress in 2011, our debt has doubled from $14 trillion to $28 trillion with no serious attempt to rein in deficit spending in sight. During that time, the debt ceiling has been increased or suspended nine times with few attempts to enact fiscal controls in exchange. The Federal Debt Emergency Control Act would be a major step in recognizing that we can’t keep mortgaging our children’s future and must take steps to reduce out of control spending.”
Andrew Lautz, Director of Federal Policy, National Taxpayers Union (NTU) said:
“Congress needs to get serious about record debt and deficit levels, while also working to avoid back-breaking tax hikes on the middle class and small businesses. Senator Scott’s Federal Debt Emergency Control Act would give Congress the tools it needs to meaningfully address the debt when it outgrows the size of the economy. NTU applauds Senator Scott for leading this fiscally responsible effort.”
Tom Schatz, President, Council for Citizens Against Government Waste, said:
“After the budget deficit has exceeded $3.7 trillion and the national debt stands at more than $28 trillion, it is time to rebuild the nation’s fiscal security. The Federal Debt Emergency Control Act creates a commonsense plan to rein in the federal government’s excessive spending habits; makes payments toward reducing the national debt; and forces members of Congress to be on the record when they vote to increase the deficit. Passage of Senator Scott’s legislation will begin to put an end to reckless, wasteful, out-of-control government spending.”
Grover Norquist, President of Americans for Tax Reform, said:
“Federal spending and the national debt have been completely out of control for years, yet the Biden administration wants to make this problem worse by enacting trillions of dollars in new spending. Lawmakers must get serious about curbing this problem and can do so by supporting Senator Rick Scott’s Federal Debt Emergency Act. This important legislation will implement much needed legislative reforms that will force lawmakers to seriously address federal spending and deficits. Importantly, this legislation contains safeguards to protect against tax increases, ensuring that politicians do not force working families and businesses to pick up the tab for years of Washington mismanagement.”
Brent Gardner, Americans for Prosperity Chief Government Affairs Officer, said:
“Washington has gone on a spending spree, adding trillions of dollars to our national debt since last year. The Federal Debt Emergency Control Act makes important reforms to stop Congress from its habit of deficit spending on the taxpayer’s dime.”
Adam Brandon, President of FreedomWorks, added:
“With a national debt surpassing 28 trillion dollars, our country’s fiscal health is in dire straits. Decades of reckless spending have created a true emergency laid at the feet of Americans now and for generations to come. More than ever, we need real conversations and workable solutions to address the national debt. Senator Scott’s Federal Debt Emergency Control Act is an important measure to force politicians who would rather look the other way to instead curb Congress’s spending addiction and preserve the financial health of our country.”
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