Casey seeks extension of food bank tax break for businesses
With the feast of thanks and, for many of us, gorging just a few hours off, it’s bracing to be reminded there are still considerable numbers of people in the United States whose stomachs growl because they don’t have reliable access to food.
At the same time, a full 40 percent of the food that is grown and transported ends up never being consumed and is unceremoniously discarded – 70 billion pounds’ worth.
In an effort to curb both numbers, U.S. Sen. Bob Casey of Pennsylvania told reporters in a conference call Tuesday afternoon he hopes tax incentives for businesses that donate excess stock to food banks will be included in a bill being negotiated on Capitol Hill. It would extend business tax breaks that expired at the end of 2013 and this year, and were at the heart of negotiations between Republicans and Democrats ever since.
If the tax break is made permanent, the Democrat said it would make businesses better able to donate food, including fresh produce, to food banks. Farmers and other “cash method” accounting taxpayers would be allowed to consider 25 percent of the fair market value of the donated food as the cost to produce the food.
“It’s a substantial incentive to reduce food insecurity and reduce the amount of food that is wasted,” Casey explained.
It’s believed Republicans and Democrats are close to an agreement on the tax package, though it’s not certain if President Obama will ultimately sign off on it. According to Bloomberg News, the entire set of tax breaks would add $450 billion to the deficit over the next 10 years.
The tax incentive would be extended beyond corporations to small businesses, restaurant owners, ranchers and farmers, the latter of whom often have fresh produce to donate.
“It’s a good policy that we know will work,” Casey said. Because of the incentive, there was a 137 percent increase in the amount of food that was donated to food banks, he added.
In Pennsylvania, the rate of “food insecurity,” which is defined by the U.S. Agriculture Department as a reduced diet in terms of quality and quantity to skipped meals, stands at 14.3 percent.
“In some ways, these numbers are not a surprise,” Casey said. “I’m not sure people should be all that surprised, but we should be outraged and determined to change it. It should be unacceptable to people in both parties.”