In a recent article written on TakePart, Willy Blackmore, the site’s Food editor, took a look at the Obama administration and their efforts to almost ignore a bill to help
Blackmore discusses the Fighting Hunger Incentive Act, which “promises to increase donations to food banks and other charitable groups by providing tax incentives”. The act was passed on Feb. 12 and has a huge impact on the taxes.
The percentage limitation for such deduction for a taxpayer other than a C corporation is increased from 10% to 15% of the taxpayer’s aggregate net income. For C corporations, the percentage limitation is 15% of taxable income. Allows a five-year carryover period for contribution amounts exceeding such percentage limitations.
Taxpayers who do not account for inventories and are not required to capitalize indirect costs may elect, solely for computing the enhanced deduction for food inventory, to treat the basis of any apparently wholesome food as equal to 25% the fair market value of such food.
The bill sets forth a rule to determine the fair market value of contributions of apparently wholesome food that cannot or will not be sold.
According to the bill, the tax deductions and tax credits that are being taken out are supposed to benefit the top one percent of Americans, which obviously gives people some cause for concern.
Here’s a chart that describes the value of charitable deduction by income groups (via Dailykos).
Joel Berg, who is the executive director of the New York City Coalition Against Hunger, actually spoke about the impact of the bill on TakePart. He poised this question, “If Congress is willing to increase deficits by $1.9 billion in the name of fighting hunger, why not give it to SNAP or raise the earned-income tax.”
Other than a bill, which many people may not understand, the United States Environmental Protection Agency (US EPA) lists easier ways to reduce wasted food. Basically, they want to you to help out and fight hunger!
Ways to Reduce Wasted Food (via the US EPA):
- Shop your refrigerator first! Cook or eat what you already have at home before buying more.
- Plan your menu before you go shopping and buy only those things on your menu.
- Buy only what you realistically need and will use. Buying in bulk only saves money if you are able to use the food before it spoils.
- Be creative! If safe and healthy, use the edible parts of food that you normally do not eat. For example, stale bread can be used to make croutons and beet tops can be sautèed for a delicious side dish.
- Nutritious, safe, and untouched food can be donated to food banks to help those in need.
- Freeze, preserve, or can surplus fruits and vegetables – especially abundant seasonal produce.
- At restaurants, order only what you can finish by asking about portion sizes and be aware of side dishes included with entrees.
- Take home the leftovers and keep them for your next meal.
- At all-you-can-eat buffets, take only what you can eat.
- Compost food scraps rather than throwing them away.
They also list resources for food donations to help aid hunger throughout the world.