Starting tomorrow the House and Senate are expected to give final approval to major tax reform legislation, known as the Tax Cuts and Jobs Act (HR 1), before sending it to President Trump who has indicated he will promptly sign the measure into law. As discussed on our December 14 update, HR 1 is the most significant re-write of the United States Tax Code in three decades and, despite a historic lobbying effort by the nonprofit community, the legislation will significantly impair tax incentives for charitable giving and make a number of other changes that will greatly affect the tax-exempt sector.
We feel it is vital to keep you informed about the current tax reform, active in in both the House and Senate. CGP appreciates the work you have done to help minimize the potential impact to charitable giving, and there is still more work to do.
Fast-Moving Tax Reform Legislation to Clear Key House Committee Today While Senate Leaders Plan to Unveil Their Reform Bill
(11-9-2017) Both the House and Senate are actively considering major tax reform legislation this week and next, which will dramatically alter tax incentives for charitable giving. As a result of this fast-moving legislation, CGP is asking all members to contact their Members of Congress today and tomorrow to advocate for a universal charitable deduction. Given all that’s at stake, the time to act is now.
WASHINGTON, DC – Earlier today Republican leaders in the House introduced the Tax Cuts and Jobs Act (HR 1), a 429-page mark of sweeping tax reform legislation that has taken key lawmakers months to draft. Text of the legislation can be found here. A section-by-section analysis can be found here.
On Thursday, October 12 more than 50 nonprofit leaders who specialize in charitable gift planning convened on Capitol Hill urging Members of Congress and senior Congressional staff to protect the full value of the charitable deduction. Lawmakers are presently drafting the largest rewrite of the federal tax code in 30 years, and legislation is expected to move through Congress in November.
Last week Republican leaders unveiled a “unified framework” for tax reform that will serve as the basis for major tax reform legislation currently being drafted by the two tax-writing committees. This legislation, expected to move through Congress later this year, would significantly reduce charitable giving in America. Although the framework maintains the current-law charitable deduction, the vast majority of taxpayers – as many as 95 percent! – would no longer itemize deductions on their taxes, meaning the charitable deduction would become virtually meaningless to them.