Welcome to the Alliance for Charitable Reform’s biweekly newsletter. Here we’ll provide you with news and views on issues that impact philanthropy.
For a refresher on the issues, visit our Archives
Thursday, April 17, 2014
>> Federal: Tax Extenders Take Center Stage
>> Federal: House Budget Vote
>> Federal: Ryan Releases Budget Blueprint
>> Consider This: Some High Praise Offered
>> Top Reads: Senate Finance clears tax extenders measure
Congress is currently on a two-week recess for the Easter and Passover holidays. Members will return to Washington the week of April 28.
Before leaving town last week, the Senate Finance Committee approved an extenders package, a group of annually expiring tax provisions historically renewed each year. This package included the IRA charitable rollover provision, retroactive to January 1, 2013 and prospective to December 31, 2015. Senate Finance Committee Chairman Ron Wyden (D-OR) said action on the Senate’s package may occur soon after the upcoming two-week Easter recess and Senate Majority Leader Harry Reid (D-NV) appears to agree with that timeline. Finance Committee Ranking Member Orrin Hatch (R-UT) said he was pleased with the outcome of the markup process, but would favor cutting some spending in the package through amendments when the bill is debated by the full Senate. At this time, it is unclear whether or not amendments to the package will be allowed.
Meanwhile, House Ways and Means Committee Chairman Dave Camp (R-MI) is taking a more thorough approach toward tax extenders. Last Tuesday, the Committee held what Camp described as the “first in a series of hearings” on the expired tax provisions, focusing on the seven business extenders that Chairman Camp included in his tax reform draft. As of this writing, additional hearings have not been scheduled.
House Budget Committee Chairman Paul Ryan (R-WI) released his fiscal year (FY) 2015 budget last week, and on Thursday the House passed the budget by a vote of 219 to 205. The Ryan budget proposes an overhaul of safety-net programs, enacts major spending cuts to balance the budget in 10 years, and “calls for a full replacement” of the President’s health care law. Of note, the budget does not seek to implement specific provisions of Chairman Camp’s tax reform discussion draft. The budget has little chance of becoming law in the Senate, particularly since Congress already enacted a budget for FY14 and FY15 last December.
On Tuesday, House Budget Ranking Member Chris Van Hollen (D-MD) released the House Democratic budget. The proposal includes an increase for the child tax credit and major expansions to the earned income tax credit. Also of note, Van Hollen’s proposal demonstrates his support for deficit neutral tax reform, but he does not promise a reduction of the top tax rate. This budget has no chance of passage in the Republican-led House.
The main point of these budget bills is for each side to draw fiscal policy distinctions so voters can have a clearer understanding of what each party stands for as they head to the polls in November.
Please join us on April 29 at 3:00 p.m. EST for the second in a series of ACR webinars—this one focusing on the economic impact of the nonprofit sector.
The nonprofit sector generates $1.1 trillion every year in jobs and services, employs 10 percent of the U.S. workforce, and accounts for more than 5 percent of GDP. Employees of nonprofit organizations received roughly $587 billion in wages and benefits—9 percent of all wages paid in the U.S. in 2010. While these strong figures grab the attention of lawmakers, this webinar is designed to help you and your allies in the nonprofit sector deliver this message successfully. Presenters at the webinar will include:
- Laurie Norton Moffatt, director/CEO, Norman Rockwell Museum
- Rhett Butler, government liaison, the Association of Gospel Rescue Missions and founder of the Faith and Giving Coalition
- Michael McHugh, director of federal affairs, The Philanthropic Collaborative
To RSVP for the webinar, click here.
- Federal: Charities critical of new federal giving rules
- Federal: Tax Extenders in Limbo
- Federal: IRS chief: New rule on the way for tax-exempt groups
- Federal: IRS chief committed to new rules for nonprofits despite conservative resistance
- Opinion: Rep. Dave Camp’s plan would make Tax Day easier
- Opinion: Lesson For April 15: Why Government Can’t Replace Charity
- Local: Nonprofits urge caution in changes to federal tax laws
- Local: Senator Ron Wyden On Tax Reform, Surveillance, Hanford
- ACR Blog: Wyden Reaffirms Support for Charitable Deduction, Troubled by Floor Proposal
- ACR Blog: Diversity of Thought: Jefferson’s Influence on Philanthropy
- ACR Blog: The Boston Marathon: A History of Charitable Giving
- Multimedia: IRS to Re-Propose Rule Defining Political Activity for Nonprofits
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