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259801 ., . • �ORI6INAL TO CITY CLERK /�9R�� ' CITY OF ST. PAUL FOENCIL NO.�` ' OFFICE OF THE CIN CLERK C CIL ESOLUTION-GENERAL FORM R . �� PRESENTED BY j �� COMMISSIONE DATF WHEREAS , the national and local importance is recognized of the benefits derived from private , religious , educational , health, welfare, and cultural organizations; and WHEREAS, these organizations depend upon the private contributors to sustain their operations and programs ; and WHEREAS , the major incentive to private contributors in donating money to these organizations is the fact that said donations are tax deductible ; now, therefore , be it RESOLVED, that the Mayor and Council of the City of Saint Paul opposes the elimination of tax deductibilityfor contributions made to private, religious, educational , health, welfare , and cultural organizations ; and be it FURTHER RESOLVED, that the City Clerk is hereby authorized and directed to send copies of this resolution to the Honorable Wilbur Mills, Congressman, Arkansas, and the Honorable Michael Mansfield, Senator, Montana. � O�T 3��1972 COUNCILMEN Adopted by the Council � 19— Yeas Nays . Butle 0 CT 4 1977.1 �a n� prove 9 �rl n Kon�patzk� � L ne Levine �� Favor �dith M°redii�i prafka �� yor ,, �#eacc� �_ ,� Against Tedesco�. ��. Fr::sic9�nt, 3utlet+�' Mr. P esident, N1�Carty PIJBLISHED QCT 71972 �� ►=�. � � .o,�"�,n,��,� 259��1. - CITY OF ST. PAUL p�UNCIL NO � O�FICE OF THE CITY CLERK COUNCII. RESOLUTION—GENERAL FORM PRgENTED ET COMMISSIONER �A*R I WHEREAS , the national and local importance is recognized of the benefits d�rived from private , religious , educational , health, welfare, and cultural organizations; and WHEREAS, these organizations depend upon the private contributors to sustain their operations and programs ; and WHEREAS , the major incentive to private contributors in danating money to these organizations is the fact that said donations are tax deductible ; now, therefore , be it RESOLVED, that the Mayor and Council of the City of Saint Paul opposes the elimination of tax deductibilityfor contributions made to private, religious, educational , health, welfare , and cultural organi2ations ; and be it FURTHER RESOLVED, that the City Clerk is hereby authorized and directed to send copies of this resolution to the Honorable Wilbur Mills , Congressman, Arkansas, and the Honorable� Michael ��iansfield, Senator, r4ontana. COUNCILMEN Adopted by the Council O CT 3 �97219._. Yeas Naya utler �CT 41972 lso Wunt Approverd 18� L • Konopatzki � M ith �-Pvine �ln Favor e 1^redith � �� Sp fka �-- a.��inat T de co �� me. President, Buttet' Nlr. Presiden McCarty �� . �. - ~ •ORIGINAL TO CITY CLERK . - CITY OF ST. PAUL FIOE NCIL NO. • OFFICE OF THE CITY CLERK � C UNCI RESOLUTION-GENERAL FORM PRESE D BY COMMIS NE ATF WHER S, the national and local importance is recognized of the bene its derived from private, religious, educational, health, welfa e, and cultural organizations; and WHEREAS, th e organizations depend upon the private contributors to su tain their operations and programs; and WHEREAS, the maj incentive to private contributors in donating money to these organizations is the fact that said donations are tax deducti le; now, therefore, be it �)e�.�.� RESOLVED, that the Goun ' 1 of the City of Saint Paul opposes the elimination of ta deductibility for contributions made to private, religious, edu tional, health, welfare, and cultural organizations; and be it FURTHER RESOLVED, that the City Clerk is hereby authorized and directed to send copies o t is r olution to the Honorabl� Wilbur Mills, Gongressman, �' and the Honorable Michael Mansfi�ld, Scnator, Montana. �� ,,�� — APP �� st. City A orney �1 COUNCILMEN Adopted by the Council 19— Yeas Nays Butler Carlson �. Approved 19_ Levine �n Favor Meredith Sprafka � Mayor A gainst Tedesco Mr. President, McCarty �,��.� � �� r� u . � � � C F a Q� - , ; r � �_� ... �l Saint Paul �t� R�ff Council of Arts and Sciences MEMORANDUM T0: Council Board of Directors FROM: Marl ow G. Burt ��.,,,�j� RE: Federal Legislation Pertaining to Charitable Oeductions D�TE: September 14, 1972 Please find enclosed material that I received from Mr. William Smith of the Greater Saint Paul United Fund and Council , Inc. This material is self-explanatory and of great importance to the future of the Arts and Science Council and agencies like ours. I hope you wiil take the action necessary to insure that proper consideration is given for tax legislation by Congress to the charftable aspect of the future. MGB 3r Enclosure 30 east tenth street, St. Paul, Minnesota 55101 . (612) 227-8241 � � � Schubert Club •Science Museum of Minnesota •St.Paul Opera Association •Chimera Theatre Company •Minnesota Museum of Art •St Paul Phi/harmonic Society .. ; E�� '. f��3� �G�� ;'�� QG�� d� ��`�'�. 333 Sibley Street Saint Paul, Minnesota 55101 (612) 224 - 5531 August 30, 1972 ' Mr. Marlow G. Burt Executive Director St. Paul Council of Arts and Sciences 30 East lOth Street St. Paul, MN 55101 Dear Marlow: I feel reasonably sure that currently proposed legislation which would have a serious effect upon private philanthropy has been brought to your attention. However, in the event that it has not, I want to take this opportunity to draw your attention to a very serious situation that could undermine the support of all private religious, educational, health, welfare, and cultural organizations in our country. The Congress currently is concerned about the problem of closing tax loopholes, and two companion bills H.R. 15230 and S. 3657 have been introduced which would repeal in their entirety the various tax deduc- tions allowed under the internal revenue code. Included in such a repeal would be the tax deductability of contributions made to private philanthropy. Several other proposals have been made in Congress which would give automatic allowances to tax payers for contributions even though such contributions were not made; this would have the effect of destroying the incentive for many to contribute. The enclosed brief summary highlights the problem. Of immediate urgency, however, is the fact that the Mills-Mansfield bills may be attached as a rider or amendment to the debt ceiling bill which the President must have approved if the government is to avoid a financial crisis. This would pose the problem that the President would either have to sign the bill and with it repeal the charitable deducations allowance, or be faced with a financial problem of serious proportions. It is of paramount importance that all who believe in the private system in religion, education, health, welfare, and the arts register their point of view immediately. May we suggest that you encourage /972•73 BOARD Of THOMAS CONNELLY HARRY HOLTZ ROBERT REARDON ROBERT TUCI(�R MRS.EOWARD P.DAVIS WILLIAM F.JOHNSON BERNARD H.RIDDER MRS.JOHN VADNAIS OFFICERS DIRECTORS ROBERT DAYTON DONALD KEHNE 'ROBEqT B.RIDDER MRS.CARLETON VANGSNESS ANTFIONY DeZIEL LLOYD L.LEIDER DR.A.E.RIT'T JOHN J.VERSTRAETE 'JOHN H.MYERS,PRES. 'BEN AGEE CARL B.DRAKE,JR. 'ROBERT S.MACFARLANE 'JOSEPH L.ROSE RAY WHEELER 'DONALD GARRETSON,1ST V.P. HY APPLEBAUM MRS.FREDEF�CK FISCHER 'JAMES O.MANN RAMEDO SAUCEDO WILLIAM O.WHITE 'PHILIP NASON,V.P. JOHN C.ASHTON WILLARD FRYHOFER JOHN McHUGH DF.IVAN SCHLOFF 'BENNO F.WOLFF 'WILLIAM J.HICKEY,JR.V.P. SAMUE�BEARMON DONALD FULTON 'JOHN M.MUSSER MRS.HARRY SHAPIRO 'FRANCIS BEDELL,V.P. JOEL BENNETT •RICHARD GEHRING ROBERT NAGLE MRS.B.WARNER SHIPPEE 'MRS.IW HAGAN,V.P. FREDERICK BJORKLUND •BENJAMIN G.GRIGGS,JR. JOHN F.NASH V.DeWITT SHUCK •EXECUTIVE 'KENNETH EVERHART,V.P. •H.WILIIAM BLAKE HOWARD GUTHMANN JOHN G.ORDWAY,JR. ARTLEY SKENANDORE CpMMITTEE 'H.JAMES SEESEL,JR.,V.P. •CO�EMAN BLOOMFIELD MRS.ALLIE MAE HAMPTON COLE OEHLER 'MRS.HAROLD SLAWIK 'iiICHARD O'KELLV,TREAS. MRS.AMOS BROWN ROBERT HAUGAN LEWIS PAPEq CHARLES STOFKO 'FRED KUEPPERS,SR.,SEC: HENRV CAPIZ HARRV HELTZER JOHN C.PARISH ROY M.SVEE WILLIAM J.SMITH,EXEC.V.P. ROBERT CHINN LOWEL�G.HOLDER RICHARD RADMAN DR.FRANCIS B.TIFFANY �3 � , � , � , � Mr. Marlow G. Burt ' r ' August 30, 1972 ,Page 2 members of„ your board, faculty, and churches to write Senator Mills and Mansfield, and their senators and representatives from Minnesota, asking that the charitable deduction provisions be retained. • If you have any questions regarding the present legislation or if I can be helpful in any way, please do not hesitate to call me. Yours sincerely, � /��iLA . William J. Smith Executive Vice President WJS:bls Enclosure . ' :�'„✓s `-, . • FEDERAL LEGISLATION PERTAINING TO CHARITABLE DEDUCTIONS Legislation is being introduced that would repeal 54 provisions of the � . Internal Revenue Code over a three-year period beginning in 1974. Charitable deductions would be repealed effective January 1, 1976. Congress would then be forced to reconsider the justification for the repealed. provisions including the charitable contr•ibution deduction and other tax, benefits for charitable gifts. Congress would have the option of modifying the repealed provision, allowing it to remain repealed, or reenacting it. There would be no deduction for gifts made after 1975. These provisions could be added to the Debt Ceiling Extension Bill which is scheduled. for consideration by Congress in late September or early October. The two bills which the sec- tion on charitable gifts appears are H.R. 15230 and S.3657; the section of these bills which deal with this is 312. During the debate on the bill, other amendments could be proposed, and some that have been under consider- ation are as follows: To set a mandatory three percent deductible allowance for charitable gifts wfthout consideration of amount given. Note: According to 1970 IRS statistics, of the 35.5 million taxpayers who itemized deductions, 29 million taxpayers ded.ucted three percent or under for contributions. These deductions total $10.56 billion or 82 percent of all individual contributed dollars. Thus, 29 million out of 35.5 million taxpayers would have no income tax incentive for their contributions if the three percent floor proposal is enacted. Different percentages other than the three percent have been discussed. i ' ' �,, _ 2 . , Beaides eliminating direct financial gifts, Section 312 would also eliminate: 1. Appreciated; property gifts. � 2. Bequests. , 3. Estatea and trusta. Other sectiona of the bill would eliminate: ' 1. Medical costs. 2. Casualty losses. 3. Taxea, alimony, etc. , for deduction purposes. The enactment of Section ,312 would effect charitable giving and could cause great hardship on the voluntary sector. The following are argumenta which could be used in letters to your Congressmen and Senators. 1. The charitable contribution deductions are unique from the other 53 items to be deleted in thaC the prime beneficiary of the donor's gift is the public which benefits from his personal sacrifice. 2. Congresa thoroughly reviewed the charitable deduction pro- vision in 1969 and mad.e sweeping changes. The greatest of all tax law changes dealt with charitable organizations and their contributors. 3. If the charitable deductions are eliminated, many charitable organizations will have to close their doors or reduce their servic�. The alternative would be for the government to take over. This would mean increased taxes to the citizens. 4. The tax incentive programa have reaulted in the expansion and. development of charitable organizations which, more than ever, depend upon private support. (The foregoing arguments should be put in the writer's own words. ) Two approachea can be taken in your letter to your Congreasmen and Senatora. One would be to completely oppoae the consideration of charitable g3.ving; the other would be to aupport Congreasman A1 Ullman's Bill H.R.15360 which would require a congreasional review of the 54 iteme of tax preferences including charitable contribution deduction but without acheduling their interim termination. �,�• � � �� . - 3 - r t Letters should be sent to: � U.S. Senator Mike Mansfield 133 Old Senate Office Building Washington, D. C. 20510 . . U.S. Senator Walter F. Mondale � 443 Old Senate Office Building Washington, D. C. 20510 U. S. Senator Hubert H. Humphrey 232 Old Senate Office Building Washington, D. C. 20510 Congressman Wilbur D. Mills Office ��1136 Longworth Building � Washington, D. C. 20515 Congressman Joseph E. Karth 2432 Rayburn Building Washington, D. C. 20515 Note: Congressman Karth is on the Aouse Ways and Means Committee which deals with bills of this type. He is also on the Indianhead Council of Boy Scouts. / ,' October 5, 1972 Hon. I�ichael Mansfield U.S. Senator Senets 4f�ice Hld�. W�,shington, D.C. Dear Sir: Attached Por your inPo�nation is a r�solution of' the 3t. Paul C�.ty Council op�sing legislation that would eliminate �e.x dcd.uatibility Por eontribu�ians made to varioue private, religious �nnd cultura]. or�ani�ations. Very truly yours, City C1�rk ml / October 5, 1972 Hon. Wilbur Mills U.S. Senator Senate Office Bldg. Washington, D.C. Deax Sir: Attached for your information is a resolution of the St. Paul Ci�y Council opposin� legislation that would eliminate tax deductibility Por contr�:butiong made to vexious prive,te, religious and cultural or�anizations. V�ry truly yours, City Clerk ml