The tax plan includes, among the many proposed changes,:
- Lowering the tax rate for top earners
- Lowering the corporate tax rate
- Preserving the charitable deduction
- Doubling the standard deduction
- Repealing the estate tax
According to research commissioned by Independent Sector, doubling the standard deduction and keeping the charitable deduction in its current form would lead to a $13 billion reduction in giving each year.
The Alliance for Strong Families and Communities, along with other national organizations, has been meeting with key congressional offices to express our concern for charitable giving and to offer the solution of a “universal deduction,” so that all donors could take advantage of the deduction. The universal deduction did not make it into this initial tax plan, but we will continue to articulate the potential harm to charitable giving and resulting negative impact on the nonprofit human services sector. Because nonprofit human service organizations partner with the government to provide services, charitable giving losses, combined with cuts to federal funding, could be disastrous for increasing well-being in communities.
While much of the debate will likely focus on the personal and corporate income tax rates, the potential impact on giving should also be a priority.
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