November 5, 2017

Tax Reform and the Impact on Nonprofits

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 Yesterday, the Speaker of the House and Chair of the House Ways and Means Committee unveiled their tax reform plan, Tax Cuts and Job Plan (H.R. 1).  The plan seeks to reduce tax revenue by $1.5 trillion over the next 10 years. To make up the budget shortfall, money will be raised off the backs of nonprofits in the following ways:
Weakening the Johnson Amendment
The plan proposes that houses of worship and their auxiliary organizations be exempt from the Johnson Amendment, allowing them to more easily endorse candidates and engage in politics.
Reducing Charitable Giving Incentives
The proposal more than doubles the standard deduction, reducing the need for Americans to itemize and to be charitable. It is estimated that 95% of Americans will not have this incentive any longer and that it could result in a loss of revenue to the charitable sector of $13 Billion.
Massive Spending Cuts to Domestic Spending
The cuts to taxes benefit the wealthiest among us and will mean cuts to domestic spending and ultimately to our communities.
Next Steps of this Legislation
The House Ways and Means Committee is scheduled to start its review of the bill, called a “markup,” on Monday, Nov. 6, and continue with marathon sessions until completing action during the week. The bill is then expected to go to the House floor during the week of Nov. 13. The Senate is expected to release its separate version in mid-November. The stated goal of Republican leaders is to have a bill on the President’s desk by Christmas for signing before New Year’s Day.
Voice your opinions now and throughout this process. It is important for the nonprofit sector voice to be heard, collectively and individually. Our communities will be directly impacted by these devastating changes. Contact House Ways and Means Committee Chair, Congressman Kevin Brady’s office:

Our national affiliate, the National Council of Nonprofits is exercising its muscle on our behalf. See its special edition of Nonprofit Advocacy Matters, which outlines these and other aspects of the legislation clearly.
And other publications where the Council provides a clear voice of opposition.
Be vigilant and let your voices be heard.
Courtesy of HANO


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