Since those early days, The American Legion has expanded its volunteer activities to include athletic events (like Special Olympics), scholarship funds, blood donor programs and a multitude of community based volunteer activities too numerous to cite here. То illustrate our involvement, we would like to ask that several documents which explain Legion programs and activities be included for the record. In addition, we would like to submit for the record a copy of the 1982 Consolidated Posts Report indicating the degree of involvement of American Legion Posts in volunteer programs and activities at the community level. Today, there are 58 Departments and more than 16,000 American Legion Posts in this country and overseas. In addition, there are nearly 12,000 American Legion Auxiliary Units worldwide. Together, the Legion and its Auxiliary represent more than 3.6 million members who serve their communities and fellow Americans without pay. Our membership looks to the federal government to recognize their contributions and services and for equitable treatment. National Volunteer Week is but one way the government has recognized the achievement of volunteers. members also depend on the volunteer mileage tax deduction to defray a portion of the cost of providing their services to charitable activities. Many of our The deduction volunteers take for miles driven is not compensation. Rather, it is to help offset the expense of operating an automibile which is being used to conduct volunteer activities. More importantly, however, it is the individuals who are helped by the Legion's, as well as other volunteer organization programs who are the real beneficiaries of the volunteer mileage tax deductions for without an adequate reimbursement, the programs aiding Americans in need might be greatly curtailed. Presently, an inequity exists that threatens to deny beneficiaries those services that they desperately need. To illustrate the burden facing the volunteer driver today we would like to submit copies of two letters received by the Legion's Legislative Division. The inequity that we are referring to is between the allowable mileage rate tax deduction which can be taken by persons driving for business and the deduction which can be taken by those persons who use their automobiles to conduct charitable activities. Mr. Chairman, the correction of this inequity is long overdue. Given the state of the economy and the ever increasing reliance on volunteers to conduct programs once supported by federal revenues, the perpetuation of a dual reimbursement rate can no longer be supported by arguments of cost to Federal Treasury, enforceability or that the current mileage rate is adequate to cover the incremental costs directly attributable to the rendering of charitable services. In April of 1982 this Subcommittee was presented with a table showing the anticipated revenue loss from a bill, S. 473, that like S. 1167, was introduced by Senator Durenberger. The Treasury esti mated that the loss in federal revenues for FY 82 at $7 million; for FY 83 at $55 million; for FY 84 at $102 million; for FY 85 at $115 million; for FY 86 at $135 million and for FY 87 at $159 million. A total of $573 million in lost revenues from FY 82 through FY 87. Please notice that the anticipated loss from FY 82 to FY 83 increased by $48 million with a loss increase from FY 83 to FY 84 of $47 million. But, the loss increase from FY 84 to FY 85 is only $13 million and for the FY 86, $20 million and FY 87 the loss increase was projected at $24 million. Clearly, something dramatic would have to be at work in order to account for these increases which gradually level out in Fiscal Years 84 through 87. There are several possiblities for the dramatic increases during the early fiscal years as shown by the Treasury's chart. First, there could be a substantial increase in the use of POV's for charitable purposes. Second, there could be a substantial increase in the use of POV's for charitable purposes and a corresponding increase in the number of individuals claiming the charitable mileage deduction. And third, the number of charitable miles driven annually might remain constant and thus the increased allowance will simply reflect the added cost per mile allowed as well as an increased number of people claiming the deduction. But, even the maximum anticipated revenue loss of $159 million during FY 87 would represent an investment of less than two one-hundredths of one percent of the total federal expenditures for that year, based on current out year projections. Assuming that the third possibility is representative of what will actually occur, then we are left with the perplexing problem of explaining the mammoth increases projected by the Treasury for FY 83, a rate which is double the projected increases for each of the remaining out years. Since, even non-itemizers are now permitted to claim a deduction for charitable mileage, the increase can not be attributed solely to an increase in the number of people claiming exemptions, unless there is a corresponding increase in If the number of miles driven on behalf of charitable activities. there is a corresponding increase in the number of miles driven on behalf of charitable activities then S. 1167 and S. 1579 will have been successful in increasing the level of private sector volunteer participation which, in turn, will further decrease the demand for federal revenues. More importantly, however, is the added support to America's communities and citizens in need that the enactment of S. 1167 and S. 1579 will help to bring forth. Another argument that has been advanced in opposition to the increase in the volunteer mileage deduction is that "of the difficulty in identifying and quantifying the amount of indirect costs in operating POV's for charitable purposes that are properly attributable to the charitable endeavors". The problem with this argument, as we see it, is that it assumes a difficulty that would not, in fact, be present since the volunteer mileage rate deduction would be tied to the business / federal employee mileage deduction rate. Further, the terms identification and quantification imply some sort of rule making requirement on the part of the Treasury that would be difficult to develop. Yet, no such regulations would be necessary. Indeed, S. 1167 and S. 1579 will simplify the regulatory burden of the Treasury Department because there will be one rate and one formula to determine that rate. Likewise, arguments regarding "enforceability" are groundless unless it can be shown that volunteers are somewhat less honest than persons taking business related deductions for private automobile use. We doubt that such is the case since a 1981 survey by the Gallup Organization indicates that approximately 84 million Americans, 52 percent of the adult population, typically donate some part of their time as volunteers. Moreover, arguments which argue current law, as opposed to arguments which examine the merits of the proposed change, are not really arguments but rather statements in support of the maintenance of the status quo. But, the status quo is currently sending the wrong message to volunteers. The current mileage deduction differential between business/government and volunteers is telling the men and women who support community based volunteer programs that their services are not as valuable as the services of business and government employees. Yet, the Gallup study referred to earlier revealed that the estimated value of goods and services attributable to non-profit organizations during 1981 was nearly $64 billion. In 1980 another survey, by a different organization, estimated the value of non-profit services and products at $45 billion. The magnitude of this increase, $20 billion in one year brings the contribution of the non-profit community into proper focus. Volunteers and volunteer organizations have not been content with maintaining the status quo, indeed, they are actively seeking to increase their commitments to America's needy. But they need help. Clearly, Mr. Chairman, non-profit organizations through the use of volunteers, including the Legion, have responded to the President's call for increased assistance to Americans in need from the private sector. But, Mr. Chairman, lets look for a moment at the maintenance of the status quo. In 1957, the year prior to the institution of |