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Tax reform puts charity on the chopping block

"Tax reform puts charity on the chopping block" Continued...

“Any kind of changing of timing makes confusion rampant in the giving process,” said Tom Laymon, who heads Sunday Breakfast Mission in Wilmington, Del. “For any of us, we live and die by giving, and we really need for the government not to make it harder for our donors to give.”

Camp’s tax reform proposal is the result of three years of work, including collaboration with the Senate Finance Committee. The plan is not expected to go anywhere this Congress, but it likely will be used as a benchmark for future negotiations. The nonpartisan Joint Committee on Taxation projected the proposal would create 1.8 million jobs, and the average middle-class family of four would gain about $1,300 per year. 

As tax reform talks continue, nonprofit groups plan to keep making the case for preserving the charitable deduction’s full value. It appears they have a significant force of allies in Congress. In late January, 33 senators—17 Democrats and 16 Republicans—wrote a letter urging the top Democrat and Republican on the Senate Finance Committee to keep the charitable deduction as part of tax reform. 

“It is the only provision that encourages taxpayers to give away a portion of their income for the benefit of others,” the lawmakers wrote. “[I]t is not a loophole, but a lifeline for millions of Americans in need.”  

Sen. Ron Wyden, D-Ore., co-authored the letter, and in February took over as the Finance committee chairman when Sen. Max Baucus, D-Mont., became U.S. ambassador to China.

Listen to J.C. Derrick discuss the income tax overhaul plan on The World and Everything in It:

J.C. Derrick
J.C. Derrick

J.C. is a reporter in WORLD's Washington Bureau. He spent 10 years covering sports, higher education, and politics for the Longview News-Journal and other newspapers in Texas before joining WORLD in 2012. Follow J.C. on Twitter @jcderrick1.

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