Behind the scenes maneuvering continues on the Charity Aid Recovery and Empowerment Act (S 1924), the faith-based compromise bill sponsored by Sens. Joe Lieberman (D-CT) and Rick Santorum (R-PA) and endorsed by President Bush. Senate Finance Committee Chair Max Baucus (D-MT) has stated his intention to bring the bill before the committee sometime in June. He has indicated that he will bring up two revenue raising proposals at the same time in order to offset the cost of the nonitemizer deduction, which has been a problematic issue because of its relatively high cost. (OMB Watch has opposed the version of the tax deduction for those not itemizing their taxes in S. 1924 because it will generate little new giving and diminish the treasury during a time of cutbacks for human service programs. See details.) Baucus is seeking to offset the $30 billion ten year cost of the nonitemizer tax deduction by eliminating two tax avoidance schemes: abusive tax shelters and corporate relocation to offshore havens. A May 22 report released by the General Accounting Office, the investigative arm of Congress, estimates that abusive tax shelters cost the treasury $50 billion in 2000, and the offshore scheme enabled 505,000 taxpayers to avoid $40 billion in tax liability that same year. There continues to be widespread support for other charitable giving provisions in the bill, such as the IRA rollover. Committee staff have also raised concerns that the reduction of foundation excise tax to a flat 1% should be accompanied by changes in the 5% payout rate foundations now follow. Staff have argued that the payout should be increased.