Rep. Tom Petri (R-Wis.) introduced a bill on Thursday that would restore a tax credit and deduction for political donations up to $200 and $600 to prompt smaller donors to play a bigger role in federal campaigns.
“Campaigns are becoming more and more expensive with no signs of slowing down,” Petri said. “And most would agree that the ideal way to finance a campaign is through a broad base of donors. Unfortunately, most Americans aren’t in the position to donate hundreds or thousands of dollars – but they want to get involved. We should be encouraging political participation.”
Small donors had access to a federal tax credit from 1972 to 1986, but the credit was eliminated in the Tax Reform Act of 1988.
“With more and more campaign operations moving to websites and online resources, campaigns could tilt the playing field away from special interests and large donors and empower small donors and average Americans,” Petri said.
More than $4.25 billion was spent in the 2011 to 2012 election cycle. Sixty-three percent of that funding came from donors who gave more than $200, according to the Center for Responsive Politics.
Candidates who won seats in Congress during that election cycle spent an average of $1.5 million on their campaigns.