The tax reform bill is in its final stages and we need to speak up loudly in our opposition.
It is not a done deal until the president signs the bill into law, which could be as early as Wednesday. While the sector gained an important win over the last few days by ensuring the repeal of the Johnson Amendment was left off the final agreement, our unified opposition to this bill remains.
This is the most consequential piece of tax legislation for the charitable community since the charitable deduction was introduced 100 years ago.
Here’s what you need to know:
- The bill increases the burden on vulnerable and middle-class people.
Analyses by the Joint Committee on Taxation and the Congressional Budget Office show that the Senate bill will increase taxes on households earning less than $75,000 in 10 years and jeopardize their healthcare coverage.
- Charitable giving will decrease by billions of dollars, eliminating services for those who need them the most.
Without creating a universal deduction in response to the doubling of the standard deduction, more than 90% of taxpayers will not have access to the charitable deduction. This will reduce charitable giving by up to $20 billion a year, according to the Tax Policy Center. This is roughly the equivalent of losing all charitable giving in Vermont, North Dakota, Alaska, South Dakota, Maine, Wyoming, Rhode Island, Delaware, Montana, West Virginia, New Hampshire, Hawaii, New Mexico, Idaho, Nebraska, Nevada, Arkansas, Mississippi, and Kansas combined.
- Hundreds of thousands of nonprofit jobs will be lost.
A recent analysis by George Washington University found that tax reform’s impact on giving will result in a loss of at least 220,000 jobs in the charitable community alone.
We’ve already seen what an engaged sector can do to win policy battles around the Johnson Amendment. It’s time now to ensure that there is clarity in our opposition. This tax reform bill will hurt our organizations and the communities we serve.
Urge your Members of Congress to vote “no” today.