On November 16, 2017, the U.S. House voted along party-lines to pass their tax reform bill (H.R. 1) by a vote of 227-205.
The bill contains a number of provisions harmful to charitable organizations and the arts:
- Overwhelming majority of taxpayers would no longer have access to make tax-deductible charitable contributions. That charitable tax deduction would be limited to the wealthiest 5% of taxpayers.
- Entertainment, amusement, recreation and membership dues expenses related to a business purpose or meeting would be repealed.
- Doubling exemptions and ultimate full repeal of the estate tax, which has historically generated major gifts to charities.
- Elimination of the teacher supplies and instructional materials deduction.
- Repeal of options to treat musical compositions and copyrights in musical works as capital assets.
- Repeal of the historic tax credit.
In sum, Congress is rushing to pass far-reaching tax reform that would have a very negative impact on charitable giving. The latest analysis of the House bill by the nonpartisan Tax Policy Center estimates that charities, including nonprofit arts organizations, could see a staggering loss of up to $20 billion annually. The resulting loss in charitable giving will cause significant consequences for the health of America’s nonprofit organizations and the communities we serve.
Please take two minutes to support charitable giving by sending a message to Congress. Ask for support for a universal charitable deduction and the Universal Charitable Giving Act (S. 2123/H.R. 3988.)