Thursday, September 28, 2017
Tax Plan Doubles Standard Deduction, Leaves Charitable Deduction In Place
Nonprofit leaders applauded the preservation of the charitable deduction but are wary of other changes that might hurt charitable giving, such as doubling the standard deduction and repealing the estate tax, under a framework for tax reform presented by Republican leaders.
Among the changes under the framework released today, the tax reform proposal would:
- Double the standard deduction to $12,000 for single filers and $24,000 for married taxpayers filing jointly;
- Repeal the estate tax;
- Increase the child tax credit while repealing most personal exemptions;
- Reduce seven tax brackets ranging from 10 to 39.6 percent into three tax brackets of 12, 25 and 35 percent, with a possible fourth bracket for the highest-income taxpayers; and,
- Reduce the corporate tax rate from 35 percent to 20 percent. . .