Back from Asia, President Trump is focused on getting Republican tax reform passed. But one of the proposed changes raises this question: Should we get financial incentives to be compassionate?
You may say, but wait, the House and Senate tax proposals have no changes in charitable deductions. So, religious institutions and nonprofits (like the one that brings you this publication) won’t be hurt, right?
Actually, no. This is a little complicated, so hang in there for a moment. The standard US tax deduction would rise from $12,700 to $24,000 for married couples. That means, far fewer people will itemize their deductions. So, less paper-chase work, a bigger deduction, and a simpler tax code. What’s not to like?
But if only 5 percent of Americans itemize (down from 30 percent now), that likely means far less charitable giving.
By one estimate, donations could drop as much as $13 billion annually. That’s less money for colleges, veterans and arts groups, disaster relief agencies, churches, and community nonprofits serving the nation’s neediest.
That’s why Republican Mark Walker of North Carolina has introduced a House bill to restore the incentive for compassion: a charitable deduction for taxpayers who don’t itemize. We’ll be watching how this plays out.
Among our five stories today, we see the qualities of justice, courage, and inclusiveness at work in the world.