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The Coalition responded to a report by the Joint Committee of Taxation outlining options for tax reform in a letter to Rep. David Camp (R-Mich.), chair of the House Ways and Means Committee and Rep, Sandy Levin (D-Mich.), the committee’s ranking member. The Coalition is unified in an effort to make sure lawmakers clearly understand that giving will decline significantly and communities will suffer if they tamper with the charitable deduction.
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On Wednesday, May 8, 2013, Senator Jerry Moran (R-KS) spoke on the Senate floor about the importance of maintaining the charitable tax deduction.
Earle I. Mack recently appeared on the South Florida Business Report (SFBR) to discuss what might happen should tax reform come at the cost of the charitable deduction. David Weir, SFBR host, sat down with Mack to gauge just what a change in the code could really mean. In Mack’s words, changing the charitable deduction would result in an “economic disaster.” He expressed that now is definitely not the time to de-incentivize charitable giving.
Mack is a philanthropist and businessman who currently resides in Florida. He is a former U.S. Ambassador to Finland and former chairman and CEO of the New York State Council of the Arts. Mack is deeply involved in philanthropic causes and has made countless contributions over the years, specifically to the arts and Drexel University.
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As Congress and the Administration deliberate fundamental tax reform, a variety of voices will fairly claim their tax situation is unique, deserving of special treatment. However, only the charitable deduction can make this case without reservation or equivocation. It truly is unique in purpose and consequence, and should be retained in any income tax reform.
]]>Our hearts and prayers go out to all those affected by the tragedy in Boston this week. Amid the horror, the American spirit of giving has been on full display as complete strangers have offered up their homes, their blood, their money and resources to help those in need. We hope for a speedy healing process for all those who have been physically and emotionally afflicted by this senseless tragedy.
]]>The Charitable/Exempt Organizations Working Group is part of the Ways & Means Committee’s process to move forward on tax reform. Preserving the charitable deduction has been a key focus of the charitable community as the deduction has been widely considered as a source of revenue for government spending or to pay down the deficit. ACR, along with the Charitable Giving Coalition, has been very vocal in stressing to lawmakers that the charitable deduction is different, the benefit is to the recipient of charity, and that it must be protected.
]]>APRIL 16 - The charitable deduction will be a target when tax reform negotiations get under way on Capitol Hill, and it does not matter which political party prevails, one of several pundits at an April 15 Urban Institute forum said.
“The kinds of public programs that do good things for worthy people are under very severe assault, and not just under the Ryan budget, but at the hands of President Obama’s budget as well,” said William Galston, senior Brookings Institution fellow and a former Clinton administration official.
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Philanthropic organizations are obligated to provide certain types of transparency – the types that are required by the federal tax system and by state laws aimed at maintaining the donor’s intent. But current heightened calls for transparency are based on other rationales: Transparency is a good unto itself and more should be required of all institutions, it is needed to ensure that philanthropy serves “public purposes,” it will counteract the “power asymmetry” between foundations and grantees, and it is necessary for a proper evaluation of philanthropic effectiveness. Upon examination, however, John Tyler would argue that none of these rationales justifies additional legally imposed philanthropic transparency, which is what advocates demand.
Joanne Florino is the senior vice president for public policy at The Philanthropy Roundtable.
]]>Last winter, charities were relieved that a percentage or dollar cap on the deduction, which they believe would cause charitable giving to decline, was not part of the fiscal cliff deal. (Prior coverage.) They also were pleased by reports that the Obama administration, which in prior years has proposed a cap on itemized deductions to pay for deficit reduction and healthcare reform, was willing to consider an exception for charities. (Prior coverage.)
]]>“Each year – and sometimes more than once – the President has proposed cutting the charitable deduction, despite resounding opposition from the American public and Congress,” said Sandra Swirski, executive director of ACR. “This year, the cut is even deeper. With the January 1st tax hike, the gap between tax rates and the charitable deduction rate is wider than ever and that will translate into less giving. Not only is this harmful to giving, which will cost charities across the country billions of dollars, but it is a dangerous precedent for the federal government to set.”
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