House Ways and Means Chairman Dave Camp (R-MI) will release his tax reform bill next week, according to a report from Politico.
“The Michigan Republican wrote his party’s tax panel members to make it official: He is moving forward with a proposal, the product of several years’ work,” the Politico article stated.
Although many believe it is still very unlikely that the bill will advance to markup much less get a vote in the House, it does not diminish the significance of the release. The document will become a template for future reform tax reform bills. As Politico put it:
“Some close to Camp say he has little to lose and wants to put out a marker for future tax reform efforts, in the vein of the first Treasury Department proposal issued by Ronald Reagan in the 1980s.”
As details about Camp’s draft become available, the nonprofit sector should continue to engage with its elected representatives about the charitable deduction or any other tax policy issue that will affect charitable giving. The release of the President’s budget is also expected on March 5, and once again we expect that budget to propose a 28 percent cap on the charitable deduction. Any proposed reduction or elimination of the charitable deduction in these two documents remains a significant concern to the charitable sector as tax reform legislation moves ahead in the future.
We encourage you to join us at the 2014 Alliance for Charitable Reform Summit for Leaders on March 5. The Summit offers a half-day of programming to provide an insiders’ look at the political issues impacting philanthropy and nonprofits, as well as guidance on how to effectively advance your cause in Washington. Camp’s draft and the President’s budget are sure to be among the topics discussed.
ACR will continue to educate lawmakers about the critical importance of preserving the full value and scope of the charitable deduction. We will also keep you updated about other legislative proposals that will affect the work of charities and foundations in our communities.