Amends the Internal Revenue Code to: (1) provide a limited tax credit for half the individual political and newsletter contributions (up to $100, or $200 for a joint return) paid by the taxpayer during the taxable year; and (2) repeal the Presidential Election Campaign Fund.
Directs the Secretary of the Treasury to deposit into the Treasury as miscellaneous receipts any amounts that remain two years after enactment of this Act in the Presidential Election Campaign Fund or the Presidential Primary Matching Payment Account.
Amends FECA to: (1) require a majority of Senate and House of Representatives candidate funds to come from individuals residing in the State in which the election is held; (2) prohibit "bundling" of contributions to candidates for Federal office by political action committees and lobbyists; (3) modify limitations on contributions for House candidates who spend or contribute with respect to an election in excess of amounts authorized by this Act under certain conditions; (4) add specified reporting requirements for such amendments; (5) revise the definition of "expressly advocating"; and (6) reduce from $5,000 to $2,000 the maximum aggregate contributions by multicandidate political committees to any Federal election candidate and his authorized political committees.