On Monday, Politico released a document containing written responses from U.S. Secretary of Treasury nominee Steven Mnuchin to questions from members of the Senate Finance Committee. Of particular note, Mnuchin stated that the administration would not eliminate the charitable deduction.
“We will consider eliminating certain deductions other than mortgage or charitable contributions,” Mnuchin wrote in the document.
We are pleased to have confirmation from a prospective member of the administration that the charitable deduction will not be eliminated. However, there are still no assurances that the deduction will not be weakened or limited. President Trump’s latest tax reform plan still includes the charitable deduction in a cap on all deductions.
Cuts, caps and limitations on the charitable deduction mean less money for charities and those they serve. The charitable deduction is not a loophole, it’s a lifeline. We encourage all members of the charitable sector to reach out to their elected officials and tell them how important it is to preserve the charitable deduction in its entirety.