SUPPORT FROM GOVERNMENT 



The simplest way that has been found to accomplish such 

 equalization is the subject of a bill, H.R. 2440, to amend the 

 internal revenue code. Its stated purpose is: 



... to provide funds for educational purposes by providing in- 

 creased incentives for private giving through the allowance of a 

 tax credit for charitable contributions to institutions of higher 

 education. 



The bill, introduced by Congressman Frank Thompson, Jr. of 

 New Jersey follows recommendations growing out of a study 

 sponsored by the American Association for the Advancement of 

 Science to explore various ways of stimulating private giving. 

 Enactment of the bill into law would be in accord with the 

 government's approval of giving, and would provide a method 

 for inducing a substantial increase in the flow of uncommitted 

 funds to higher education. The potential benefits of the bill are 

 so impressive that a brief summary seems appropriate. 



Provisions of the amendment would be permissive, not 

 mandatory. The taxpayer could take his contributions to higher 

 education as a partial credit against his computed tax. The 

 credit would be 9 1 per cent of such gifts up to 15 per cent of his 

 adjusted gross income, making the cost to him 9 cents per dollar 

 given. Based on the AAAS-sponsored study, equalization is pro- 

 vided also for those in lower-income groups who now use the 

 standard deduction. They may itemize their gifts and, in addi- 

 tion to the standard deduction now allowed, take 9 1 per cent of 

 such gifts up to 5 per cent of adjusted gross income as a credit 

 against computed tax, thus giving them the same cost of 9 cents 

 per dollar. Costs of donations to higher education would also be 

 equalized among corporations by employment of tax credits for 

 gifts up to 10 per cent of taxable income. 



Should the bill become law, colleges and universities could 

 vigorously step up their campaigns for funds, with prospects of 

 securing very substantial increases and many new contributors. 



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