WASHINGTON, D.C.— The Alliance for Charitable Reform (ACR) released the following statement upon the recent release of President Donald Trump’s tax reform proposal.
“We applaud the administration for preserving the charitable deduction and for recognizing that it is a lifeline for millions, not a tax loophole,” said Sandra Swirski, executive director of ACR.
Trump’s plan would double the standard deduction, which is similar to what House Republicans proposed in June 2016 in their blueprint for tax reform, “A Better Way Forward on Tax Reform.” That proposal stated that it would “reduce the number of taxpayers who itemize their deductions from about one-third under current law to approximately 5 percent…” This would effectively eliminate the charitable deduction for 95 percent of Americans.
“As the President and Congress work to simplify the tax code by increasing the standard deduction, we urge them to drive more charitable giving by offering all Americans a deduction – a universal charitable deduction – for their charitable gifts, not just those who itemize. We encourage the President to hold a listening session with the nonprofit sector to examine the impact of his proposal and a universal charitable deduction on giving,” said Swirski.
For several years, ACR has urged lawmakers to consider adopting a universal, or above-the-line, charitable deduction allowing all taxpayers to deduct charitable gifts.