Giving Could Plunge $13 Billion Under Tax Plan, Nonprofit Leader Says
Republican leaders would preserve the charitable deduction under a new tax proposal made public Wednesday, a key battle line for nonprofit leaders racing to ensure giving incentives remain intact as lawmakers try to rework the tax code.
However, the plan would roughly double the standard deduction, meaning millions fewer taxpayers would itemize their tax returns. That change could reduce the value of the charitable deduction as a tax incentive and depress giving, some research shows.
The Trump White House and congressional leaders say they want to simplify what they describe as an overly complicated tax code. Their plan would also reduce the existing seven individual income-tax brackets to three — with tax rates of 12, 25, and 35 percent — while leaving open the possibility for a higher tax rate for the wealthiest individuals. . .