The Bush Administration has indicated that it will no longer push for passage of the non-itemizer deduction, even as a new study shows the provision would increase charitable giving. However, the non-itemizer provision remains a centerpiece of legislation introduced by Sen. Rick Santorum (R-PA) and a priority for Republican leadership. For the first time since taking office, Bush's FY 2006 budget does not contain the non-itemizer deduction, and he has dropped it from his speeches promoting the Faith-Based Initiative. The non-itemizer was once the centerpiece of his "Compassionate Conservative Agenda." It is not clear why the president has dropped the tax break, but the provision may be too costly now that earlier Bush tax cuts have passed and the president is calling for additional tax cuts. The Family and Community Protection Act of 2005 (formerly the CARE Act) re-introduced on Jan. 24, contains the non-itemizer provision. Under this provision, single tax filers who currently use the standard deduction could deduct contributions over $250 up to a ceiling of $500. Joint filers would be able to deduct contributions over $500 up to a ceiling of $1,000. This is much less costly than the president’s original plan, which allowed many more non-itemizers to deduct charitable contributions. According to a new United Way of America study, the proposed non-itemizer deduction could result in an additional $217 million — a 26.7 percent increase in giving to United Way through non-itemizers — in annual revenue to United Way. This represents an 8.4% increase in overall individual giving to United Way or a 6.0% increase in total giving to United Way. The vast majority of their donors give less than $500, and 94 percent of United Way donors give an average gift of $101. Consequently, 41 percent of these donors do not itemize their contributions, and therefore receive no tax break from their donation. The proposed non-itemizer may spur charitable giving, and increase the likelihood of new donors, United Way claims. According to a 2002 Congressional Budget Office (CBO) paper, extending deductibility to people claiming the standard deduction should increase contributions. However, the amount of the increase is debatable. The CBO study found that allowing nonitemizers to claim a deduction for charitable contributions would be unlikely to increase the level of giving by more than 4 percent. The findings are similar to an earlier Congressional Research Service report earlier this year. The Senate’s Family and Community Protection Act of 2005 requires the Treasury Department to study the effect of the non-itemizer deduction on increased charitable giving, and of taxpayer compliance (by comparing compliance by itemizers and non-itemizers). The Treasury would be required to report to the Senate Finance and House Ways and Means committees by Dec. 31, 2006. Although the Family and Community Protection Act of 2005 still remains without a House counterpart, Republican leadership has indicated that the legislation is a priority in the 109th Congress. The legislation passed both houses of Congress last year but failed to be brought to conference.