As far as Uncle Sam is concerned, your manuscripts are worth no more than the paper on which they're printed. You have a golden opportunity to help change that, by writing or calling your congressional representatives now.

Before 1969, authors, artists and composers could donate original works-manuscripts, first editions, papers, paintings, correspondence-to libraries, museums and other nonprofit institutions, and receive a tax deduction equal to the appraised fair market value of the donated work.

Then the government eliminated this deduction from the tax code. (Some artists and writers had allegedly inflated the value of their donated work when they filed for deductions.) The resulting rule says that artists, composers and authors may deduct only the value of the physical materials that constitute their donations. Painters may deduct only the cost of paint and canvas for paintings given to museums. Writers may deduct only the cost of paper and ink for manuscripts, notes and letters donated to nonprofit institutions.

Guild Council member Daniel Hoffman was Consultant in Poetry of the Library of Congress (the post now called the Poet Laureate) in 1973-74. He witnessed first-hand the precipitous decline in donations to the Library of Congress from scholars, poets, and other authors that occurred as a direct result of this law. "The loss to scholarship in this country is incalculable," said Mr. Hoffman of the rule. "An author or other artist making tax-deductible gifts can keep together essential materials which would otherwise be dispersed by sale, withheld in private hands, or lost. Keeping together such resources is essential for the study and comprehension of our national artistic heritage."

Most unfair is the law's disparate treatment of authors and artists versus investors in the creative work of others. If an author sells his original material to someone who then donates the work to a qualified institution, that collector may deduct the full appraised market value of the work from his taxable income for the year. In fact, anyone except the creator of the work is permitted to deduct the appraised market value of the donated work. This further encourages artists to sell their work to private collectors, rather than donate it directly to public institutions.

Happily, some members of Congress understand this. They have introduced House Resolution 1598, the Artists' Contribution to American Heritage Act. If this bill passes into law, scholars, artists, writers and composers will be permitted to take tax deductions for the appraised fair market value of work donated to nonprofit institutions.

One troubling loophole in the new bill: authors and other artists may take the deduction only against their literary income, not to offset other income sources. For a high-royalty earning author, this is fine. But for those who have accumulated a lifetime's worth of valuable archival material, but whose current literary income is much reduced, the deduction is of far less worth. As we all know, evaporation of royalty-income over time is all too common for even the most distinguished authors. A correction of the bill, then, would make the law more effective.

---

SUPPORTING THE BILL

The Authors Guild strongly supports House Resolution 1598, with the deletion of the provision allowing a fair market value deduction against only literary income. We urge you to contact your congressional representative to voice your support for the bill, with the amendment.
Here's how to do it:
1. If your representative is on the accompanying list of sponsors of the bill, thank them for their sponsorship, and encourage them to promote the requested change, and to encourage its movement from the Ways and Means Committee to a House vote.

2. If your representative is on the House Ways and Means Committee, encourage him or her to support the change, and to promote a favorable and quick movement out of the committee to a House vote.

3. If your representative is in neither group, ask him or her to become a co-sponsor of the bill.

4. Ask your senators to introduce matching legislation into the Senate. You can quickly find your representatives, and their congressional activity, at www.visi.com/juan/congress. Or contact the Authors Guild for more information.

---

SPONSORS

If your representative isn't already a sponsor, ask him or her to become one.
House Sponsor:
Rep Houghton, Amo

House Co-Sponsors:

Rep Bentsen, Ken
Rep Blagojevich, Rod R.
Rep Cardin, Benjamin L.
Rep Coyne, William J.
Rep Davis, Jim
Rep Dunn, Jennifer
Rep English, Phil
Rep Eshoo, Anna G.
Rep Filner, Bob
Rep Foley, Mark
Rep Frank, Barney
Rep Frost, Martin
Rep Greenwood, James C.
Rep Hinchey, Maurice D.
Rep Hoeffel, Joseph M.
Rep Horn, Stephen
Rep Jackson-Lee, Sheila
Rep Johnson, Eddie Bernice
Rep Johnson, Nancy L.
Rep Kelly, Sue W.
Rep Kildee, Dale E.
Rep Kilpatrick, Carolyn C.
Rep Kucinich, Dennis J.
Rep Lowey, Nita M.
Rep Matsui, Robert T.
Rep McDermott, Jim
Rep McGovern, James P.
Rep McHugh, John M.
Rep McInnis, Scott
Rep Moore, Dennis
Rep Nadler, Jerrold
Rep Neal, Richard E.
Rep Paul, Ron
Rep Payne, Donald M.
Rep Ramstad, Jim
Rep Ros-Lehtinen, Ileana
Rep Roybal-Allard, Lucille
Rep Sanchez, Loretta
Rep Shays, Christopher
Rep Simmons, Rob
Rep Slaughter, Louise McIntosh
Rep Sweeney, John E.
Rep Thurman, Karen L.
Rep Udall, Tom
Rep Upton, Fred
Rep Waters, Maxine
Rep Waxman, Henry A.
Rep Weldon, Curt
Rep Woolsey, Lynn C.

Senate Sponsor:

Sen Leahy, Patrick J.

Co-Sponsors:

Sen Allen, George
Sen Bennett, Robert F.
Sen Bingaman, Jeff
Sen Cantwell, Maria
Sen Chafee, Lincoln D.
Sen Cochran, Thad
Sen Daschle, Thomas A.
Sen Dodd, Christopher J.
Sen Domenici, Pete V.
Sen Durbin, Richard J.
Sen Graham, Bob
Sen Jeffords, James M.
Sen Johnson, Tim
Sen Kennedy, Edward M.
Sen Kerry, John F.
Sen Lieberman, Joseph I.
Sen Lincoln, Blanche
Sen Reid, Harry M.
Sen Warner, John W.

---

SAMPLE LETTER

This is merely a suggested letter. We urge you to personalize the letter to your representative.
Hon. [Name of representative]
[Street address]
Washington, D.C.

Dear [name of representative]:

As a published author and one of your constituents, I write to urge your support for [or, to thank you for sponsoring] House Resolution 1598, the Artists' Contribution to American Heritage Act, which has been referred to the House Ways and Means Committee. Some 41 of your colleagues are co-sponsoring the bill.

The Act would finally redress a major injustice in our tax code against artists, composers, authors, and other creators of artistic works solely because of their professions. Before 1969, authors, artists and composers could donate original works -- manuscripts, first editions, papers, paintings, correspondence -- to libraries, museums and other nonprofit institutions, and receive a tax deduction equal to the appraised fair market value of the donated work. This deduction was then eliminated from the tax code, but only for the artists themselves.

Under current law, artists, composers and authors may deduct only the value of the physical materials that constitute their donations. But if the artist sells or gives his original material to a collector or investor who then donates the work to a qualified institution, that collector may deduct the full appraised market value of the work from his taxable income. In fact, anyone except the creator of the work is allowed to deduct the appraised market value of a donated work. Not only is this hostile to the artistic professions, it encourages the artists to sell their work to private collectors or investors, rather than donate it to universities, libraries and museums where it would be available for scholarly research.

Daniel Hoffman, a former Poet Laureate, has said that "the loss to scholarship in this country from this law has been incalculable." An author making tax-deductible gifts can keep together essential materials, such as original manuscripts, first editions, correspondence and notes which would otherwise be dispersed by sale, withheld in private hands, or lost. Keeping together such resources, and donating them to public institutions is essential for the study and comprehension of our national artistic heritage."

My fellow authors and I would appreciate your support for the new bill, with one amendment: HR 1598 currently allows artists to take the deduction only against their artistic income, not to offset other income sources. For a high-earning author or artist, this is fine. But for those who have accumulated a lifetime's worth of valuable archival material, but whose current artistic income is much reduced, the deduction is of little value: such authors might as well sell their works into private hands. Evaporation of royalty-income over time is all too common for even the most distinguished authors. This correction of the bill, then, is essential for making the law most effective.

Please support HR 1598, and promote its progress through the Ways and Means Committee.

Sincerely,

[your name, and, if you choose, writing credits]