16 September 2016

ACR Disappointed By Cap on Charitable Deduction in New Trump Tax Plan

WASHINGTON, D.C.— The Alliance for Charitable Reform released the following statement upon the recent release of Donald Trump’s revised tax reform plan.

“We are surprised and disappointed that Mr. Trump caps the charitable deduction in his most recent tax reform proposal. Cuts, caps and limitations on the deduction mean less money for charities and those they serve. That can’t be what Mr. Trump intends,” said Sandra Swirski, executive director of ACR. “The charitable deduction is not a loophole, it’s a lifeline.”

Trump’s first tax reform proposal, which was released in September 2015, preserved the current charitable deduction. This iteration of Trump’s plan would appear to cap all itemized deductions—including the charitable deduction, mortgage interest deduction, and state and local taxes paid—to $100,000 for individuals and $200,000 for couples. This provision hits exactly those donors that account for the bulk of individual giving.

“We reiterate our call for Mr. Trump to preserve the full scope and value of the charitable deduction. It is unique among all other credits and deductions because it encourages individuals to give away a portion of their income for the benefit of others. The donor is a dollar poorer while independent civil society is strengthened,” Swirski said.

The details of Trump’s revised plan can be found here.