LEWIS, RAMSTAD SAY FAIR REIMBURSEMENT FOR VOLUNTEERS INCLUDES HIGHER COST OF GAS

Yesterday Rep. John Lewis (D-GA) and Jim Ramstad (R-MN), Chairman and Ranking Member of the House Ways and Means Subcommittee on Oversight, introduced the Fair Deal for Volunteers Act of 2008 (H.R.6854). The bill will relieve volunteers who use their personal vehicles for charitable activities by allowing the Internal Revenue Service mileage reimbursement rate to reflect the higher price of gas and other fluctuations in fuel costs. Under current law, the mileage rate for charitable activity is fixed in the Internal Revenue Code at just 14 cents per mile, but the average cost of a gallon of regular gas has more than doubled in the last eight years, nearly neutralizing the benefit of reimbursement.

"As we watch this nation slip into ever more trying economic times," said Rep. John Lewis, "the work of charitable institutions and volunteers will become increasingly important to help this nation meet the mounting needs of the poor. Volunteer workers offer food to the hungry, blankets for the homeless, and comfort for the sick. This charitable work benefits our whole society, providing necessary care to people the government cannot reach. This good work not only strengthens the bonds of our society, but it can save taxpayers millions in services the government could not afford to deliver. That is why the federal government should do all it can to assist these worthy citizens. And that is why it is fitting and appropriate that the IRS offer fair compensation to Americans who help bear the load of the most needy among us."

"It is unconscionable," said Rep. Jim Ramstad, "that the charitable mileage rate is fixed at 14 cents per mile, while fuel costs have soared. This crucial legislation will provide much-needed relief to the charities and volunteers who serve the most vulnerable people in America," said Ramstad.

The Fair Deal for Volunteers Act replaces the former deduction limit with IRS flexibility to set a mileage rate for charitable work that considers current economic factors, as well as the volunteers and organizations themselves. Currently, the IRS is able to increase the deduction amount for medical, moving and business expenses to reflect current economic conditions because the rate is not written into the law. The Fair Deal for Volunteers Act was introduced in the Senate in July of this year by Senators Ben Cardin (D-MD) and Olympia Snowe (R-ME).

"Jim Ramstad and I remember working side-by-side with Ben Cardin when he was a former member of the Ways and Means committee," said Rep. Lewis. "We were glad we were able to take the Senate’s lead and build on the opportunity to present an even stronger alternative for charitable workers. This legislation could not have two greater champions than Senators Cardin and Snowe."