Rep. Tom Reed (R-Corning)
WASHINGTON – A piece of legislation sponsored by Congressman Tom Reed (R-Corning) that he says will help eliminate food waste and deliver more food to soup kitchens and food banks across the country has been approved in the House.
Reed’s Fighting Hunger Incentive Act was approved last week as part of the America Gives More Act. It passed by a vote of 279-137.
The bill will allow businesses an individuals to have a larger tax write off when donating food to charity. He calls it a win-win because it will help to fill food banks will also providing tax breaks to working Americans.
“It’s a common sense example of making sure that food doesn’t go into a landfill. It actually goes to charity and gets onto the table of the people in America that need it the most – the hungry, “Reed said. “I think it’s good policy. When you talk about reducing taxes, I think allowing Americans to keep their hard-earned taxpayer dollars in their pocket, rather then send it to Washington and go through that chain and just get pushed back out, it’s just a better policy overall.”
According to Reed’s office, nearly 70 billion pounds of unspoiled food is thrown away each year, instead of going to community food pantries to help feed to poor. Under current law, people who donate food can write-off up to 10 percent of the total value from their federal taxes. Under Congressman Reed’s proposal, that would increase to 15 percent.
The plan has been met with some criticism, with some claiming that it is simply a way to provide another tax break to large corporations and businesses. If the bill were to become law, it would create an estimated tax savings for donors of $59 million during the first year and more than $2.2 billion over a ten-year period.
During a media conference call on Feb. 10, WRFA asked Reed about possible cuts that would need to take place in order to offset the lost revenue, and he responded by saying it is too early to make that decision. “As to the impact on the budget, we’ll let that be taken care of by the growth opportunity that can be taken care of through an overall tax reform policy that can create growth for today and tomorrow,” Reed said.
The The America Gives More Act of 2015 is now in the Senate for its consideration. But even if it clears the Senate, there’s a strong indication by the president that he would veto the measure once it reaches his desk.
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