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Rahall Joins Bipartisan Effort to Provide Tax Deductions for Political Contributions

U.S. Rep. Nick J. Rahall (D-WV) joined in a bipartisan effort today to provide a tax credit or tax deduction for contributions to political candidates. "I have long advocated tax deductions for contributions to political candidates as a way to allow more people to be involved in the system," said Rahall.

Rahall joined U.S. Rep. Tom Petri (R-WI) in proposing the CIVIC Act (Citizen Involvement in Campaigns Act of 2005), which would provide two possible tax incentives for contributing to a campaign. The proposal provides for a nonrefundable tax credit of up to $200 or, alternatively, a tax deduction of up to $600, for contributions to federal candidates. Both limits are doubled for joint tax filers.

"This last election cycle, we had a great number of small donations and this legislation will encourage more West Virginians to be involved in the political process," said Rahall. "Every small donation is important to political candidates, but we know that making these donations are not always easy and hopefully this bill will help encourage more people to contribute and take a greater interest in political campaigns."

The CIVIC Act is designed to encourage Americans to increase their involvement in political campaigns beyond voting in each election. The legislation would broaden the base of donors that finance political campaigns by encouraging participation of small contributors. This expected increase in small donors would help balance the influence of big money donors.

"I will continue to support efforts that get more individuals involved in politics," said Rahall. "This type of legislation will have a positive impact on political campaigns. The more people who are involved, the more democratic our society becomes."

The tax benefits also apply for contributions to the national political parties.