Fight Hunger Act
Summary
The Fight Hunger Act proposes an amendment to the Internal Revenue Code of 1986, introducing a tax credit for food donations made to charitable organizations that serve individuals who are ill, needy, or infants. This credit would apply to both cash donations and donations of apparently wholesome food. The bill outlines specific requirements for eligible organizations and contributions, including food banks and soup kitchens.
Expected Effects
If enacted, this bill would incentivize individuals and businesses to donate to food-related charities by offering a tax credit. This could increase the amount of food available to vulnerable populations. The bill also includes provisions to prevent double benefits, carry forward unused credits, and ensure proper substantiation of donations.
Potential Benefits
- Increased food donations to charitable organizations.
- Potential reduction in food waste.
- Financial relief for donors through tax credits.
- Support for organizations addressing food insecurity.
- Encourages businesses to donate excess food.
Potential Disadvantages
- Potential for increased complexity in tax filings.
- Risk of fraudulent donation claims.
- Administrative burden for the IRS to oversee the credit.
- Possible reduction in government tax revenue.
- May disproportionately benefit higher-income donors.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution, as it aims to address food insecurity and support vulnerable populations. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. The tax credit mechanism falls under this power.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).