28 September 2015

Trump Plan Preserves Charitable Deduction, But Also Claws It Back

WASHINGTON, D.C. — The Alliance for Charitable Reform (ACR) issued the following statement upon the full release of Donald Trump’s tax reform proposal.

“We thank Mr. Trump for preserving a charitable deduction in the tax reform plan he unveiled today. By preserving current law, Mr. Trump acknowledges the critical role the charitable deduction plays in encouraging private giving to support charities,” said Sandra Swirski, executive director of ACR.

While Trump’s plan does maintain a charitable deduction, his plan includes a big clawback of the deduction for upper income earners.

“ACR has long called for charitable giving to be carved out from the Pease limitation, which trims the charitable deduction for upper income taxpayers. We remain concerned that the Pease limitation amounts to a backdoor tax on giving which, we believe, leads to less giving,” Swirski concluded.

As a member of the Charitable Giving Coalition, ACR is among 40 nonprofit organizations that recently signed and submitted a letter to all candidates for President of the United States requesting their support for preserving the full scope and value of the charitable deduction in any tax reform proposal. The letter to the candidates can be read by clicking here.