ARCHIVES OF PAST MONTHS

"It is one of the most beautiful compensations of this life, that no man can sincerely try to help another without helping himself."
Ralph Waldo Emerson

U.K. government ad blitz will urge public to stop giving to homeless

Stopping the public from giving money to the homeless is the goal of an advertising campaign that the government of the United Kingdom will kick off in November, Bloomberg news reported Oct. 9. The campaign, worth $362,000, is part of the government’s larger initiative to reduce the number of people sleeping on the streets.

Preventing drug use among the homeless is a key focus of the initiative. “The ad campaign is a way of informing the public there are more effective ways of helping people living on the streets than giving them money,” said Ben Cooper of the government’s Rough Sleepers Unit.

Cooper suggested that the public volunteer or donate used items for people as they begin life off the street.

above story from www.npxpress.com

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GOP LEADERS TO TURN TO TAX CUTS SOON, ARMEY SAYS

House Majority Leader Richard K. Armey, R-Texas, still expects that GOP leaders and the White House will wrap up tax cut work by week's end. Briefing reporters October 10, Armey again gave good odds for a retirement savings package (the senate version includes the IRA Rollover for Charitable Purposes legislation), repeal of the 3% excise tax on telephones, and small business tax cuts to accompany a hike in the minimum wage. He has previously predicted that a package of tax breaks to revitalize low-income areas would reach President Clinton's desk by the end of the session.

Armey also said Republicans would push to complete bankruptcy reform legislation before lawmakers leave for the year. That proposal includes over a dozen provisions that would make it more difficult for bankruptcy filers to duck tax debts.

"We're confident we will work hard and try to get done this week," Armey told reporters. Government programs are funded through October 14, but with the piles of unfinished budget work currently facing lawmakers, the chances of moving yet another stopgap funding measure keep growing. GOP leaders have done little on the tax cut front as they work through pressing budget matters.

From NCPG (National Committee on Planned Giving) by Sandra Kerr

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Debt Relief Bill Allocates 90% to Deficit

On September 18, 2000, the House voted 381-3 to pass H.R. 5173. In passing this bill, the legislators have allocated 90% of the fiscal year 2001 surplus to debt relief. Noting that the Republicans who sponsored this legislation had changed their stance from tax cuts to debt relief, Charles Rangel (D-NY) stated,: "Suddenly the Republicans say that paying down debt is the most important thing. Not even the Chineese gymnastics team is as flexible in their positions as these Republicans."

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House Again Overwhelmingly Approves Pension Changes, Debt Relief

By a 401-20 vote on September 19, House lawmakers cleared H.R. 5203, a reconciliation package that includes the $16 billion five-year package of pension and IRA changes the chamber approved in July and a debt relief bill it approved September 18.

Across the Capitol, the Senate is set to bring up its slightly larger $27 billion five-year package the week of September 25; it unanimously cleared the Senate Finance Committee earlier this month. Both chambers' bills would hike the annual IRA contribution limit from $2,000 to $5,000 by 2003, the first boost since 1981.

Both bills would:

· increase the contribution limit to defined contribution plans such as 401(k) to $15,000 by 2005;
· raise to 20% of compensation the limit on an employer's deduction for contributions to defined contribution plans;
· make different types of defined contribution plans more fungible and portable;
· speed up vesting requirements for employer matching contribution plans from five years to three; and
· modernize pension laws to encourage small businesses to offer pension plans.

The Senate bill, the Retirement Security and Savings Act of 2000, includes over 50 provisions Roth says are geared toward reversing the disincentives that discourage saving and expanding retirement savings opportunities. It would also:
· Allow a qualified charitable distribution from an IRA, which is made after age 70-1/2, which qualifies as a charitable contribution (within the meaning of sec. 170(c)), and which is made directly to the charitable organization or to a charitable remainder annuity trust, charitable remainder unitrust, pooled income fund, or charitable gift annuity.
· Create a tax credit for small employer plan contributions and start-up costs designed to help offset the first three years of costs involved in starting a small business retirement plan;
· rename as a "Roth 401(k)" a new retirement tool that would allow workers to contribute after-tax dollars to a 401(k) and withdraw funds upon retirement tax-free;
· increase income limits for contributions to Roth IRAs for joint filers to twice the limits for single filers; and
· increase the income limit for conversions of an IRA to a Roth IRA to $200,000 for joint filers.

above news release from the National Committee on Planned Giving

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New Proposal on Estate Taxes

In the last days of this past Congressional year, Rep. John Tanner (D-TN) and other members of the House introduced another estate tax relief bill. Rep. Tanner noted, "I cannot go along with those who believe an 'all or nothing' strategy should be the course we chart for those to whom we have been promising tax relief."

The proposals include:

As the approach in Congress to date (one that was vetoed by President Clinton and subsequently upheld) has been an all or nothing at all posture regarding reforming estate taxes, this attempt at reaching a point in the middle ground is significant. Congress has often resorted to compromise on tax matters and the proposals in the Tanner bill have promise for estate tax reform in the next year.

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The preceding is meant as general information and does not represent legal or tax advice. Individual circumstances vary - please consult your legal and tax advisors about your specific situation.