>> Budget Resolutions & the Impact on the Charitable Deduction
>> Thune-Blunt Amendment to the Senate Budget Protects Charitable Deduction
>> Ways and Means Working Groups Look at Charitable Organizations
>> Senate Finance Committee Working Groups
On Thursday, March 21st, Congress averted a government shutdown by approving a spending bill that will fund the government for the rest of the fiscal year until September 30th, 2013. This bill gives several government agencies the flexibility to implement the sequester spending cuts as they see fit rather than strictly across the board. It now goes to the President’s desk for his signature.
Budget Resolutions & the Impact on the Charitable Deduction
In addition to approving a short-term spending bill, both the House and Senate are conducting business on their respective budget proposals for fiscal year 2014.
In the House, the Republican proposal crafted by Budget Committee Chairman Paul Ryan (R-WI), passed
in a partisan vote of 221-207, but likely won’t be approved by the Democratically-controlled Senate. The House plan does not address the charitable deduction, but does call for fiscal restraint. The plan consolidates income tax rates into just two brackets, 10% and 25%, while eliminating all or most loopholes and deductions, which could include the charitable deduction. We will keep our eye on that for any further developments... keep reading >>
Thune-Blunt Amendment to the Senate Budget Protects Charitable Deduction
In an effort to preserve the charitable deduction in the budget process, Senators John Thune (R-SD) and Roy Blunt (R-MO) introduced
an amendment that would carve out the deduction from the revenue target set in S. Con. Res. 8. The amendment protects the charitable deduction from being cut, capped, or eliminated to pay for new federal spending as part of an overall tax increase. In his speech on the Senate floor, Senator Thune reiterated that the charitable deduction is unique and should not be used to raise revenue, since those most in need will feel the pain. The amendment is expected to be voted on sometime Friday. We applaud
Senators Thune and Blunt for their efforts to protect the sector, and are supportive of the Senate taking a stand on the charitable deduction and call on Congress to continue the recognition that the charitable deduction is different and must be protected. Also see: amendment text and video of Thune’s Senate floor speech.
Ways and Means Working Groups Look at Charitable Organizations
As you
know, the House Ways and Means Committee split into 11 working groups to examine specific aspects of tax reform. The individual groups have begun their work by holding “roundtable” discussions with stakeholders and interested parties. The group examining charitable and tax-exempt organizations, co-chaired by Reps. Dave Reichert (R-WA) and John Lewis (D-GA), recently held one of these roundtables with five foundation leaders to better understand ways in which the tax code impacts private and community foundations. Three ACR leaders were invited to participate. We are encouraged by the working group’s progress and look forward to continuing to provide them the information they need for their final
report.
Senate Finance Committee Working Groups
Following the example set by the House tax reform working groups, Senate Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Orrin Hatch (R-UT) announced a series of 10 weekly meetings
on various tax reform topics to lay the groundwork for reform and produce a series of discussion papers. The meeting topics include tax exempt organizations and charitable giving in addition to tax code simplification; small business, corporate investment and innovation; families, education and opportunity; infrastructure, energy and natural resources; types of income, investment and tax structures; economic security, health, retirement and insurance; international competitiveness; economic and community development; and non-income tax issues and related reforms. The meetings are for Senators and senior staff only and started Thursday, March 21st. In that closed-door meeting, Committee Members discussed simplifying the tax code and reforming rules for tax preparers.
