Earlier today, Republican leaders in the U.S. House of Representatives released the text of their long-awaited tax overhaul proposal. While the legislation preserves the charitable deduction, it makes other changes to the tax code that could reduce donations to museums and other nonprofits by a remarkable $13 billion per year. Legislators need to hear how important charitable donations are to museums and the communities they serve.
As we noted last month, the increased standard deduction envisioned by this overhaul would effectively eliminate the charitable giving tax incentive for 30 million Americans. The Alliance is working with the Charitable Giving Coalition in calling on Congress to enact a universal charitable deduction available to all taxpayers, regardless of whether they itemize.
The legislation—the Tax Cuts and Jobs Act—is scheduled for consideration next week by the tax-writing Ways and Means Committee. Republican leaders have set an ambitious timeline of passing a tax overhaul through the House of Representatives this month and enacting it into law by the end of the year, so time is of the essence.