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Washington Roundup
>> Senate Democrats Release a Plan
>> Ways and Means Continues Work on Tax Reform
>> Charitable Hearing
This week, Members of Congress left town for the President’s day break without reaching an agreement to offset the looming sequester, the set of spending cuts slated to take effect on March 1st. Both sides indicate the sequester is not the best way to approach spending cuts, but have been unable to break the stalemate in Congress and with the White House. On Tuesday, the President called
on Congress to make a deal as soon as they returned next week, urging them to delay the sequester by enacting targeted spending cuts and closing certain tax “loopholes” through comprehensive tax reform. He acknowledged that would be very difficult and added that “at minimum, Congress should pass a smaller package of spending cuts and tax reforms... to give them time to work together on a plan that finishes the job of deficit reduction in a sensible way.”
House Republicans immediately denounced this plan... keep reading >>
Senate Democrats Release a Plan
Just before leaving town, Democrats in the Senate released
a $110 billion proposal that would delay the sequester through the end of 2013 by enacting spending cuts and increasing taxes. Half of that $110 billion would come from new spending cuts that include ending certain farm subsidies and cuts to defense spending, but only after 2015. The other half would come from tax increases on those earning more than $2 million a year – a 30% minimum tax called “The Buffett Rule.” This bill would also eliminate all other deductions and credits for this income group, except for the charitable deduction. In its current form, this new proposal is also not expected to pass, but it could serve as the basis for negotiations going forward.
As you may recall, the Buffett Rule is not new and this type of legislation has been tried before... keep reading >>
Ways and Means Continues Work on Tax Reform
Meanwhile, on the House side, Ways and Means Committee Chairman Dave Camp (R-MI) announced
the formation of 11 small working groups tasked with taking the next step towards tax reform. Importantly, one of the groups will focus on charitable giving incentives. Each group will handle one issue and will be led by one Republican and one Democrat from the Committee, but open to input from all members. The groups are not expected to produce legislation, but rather work with the Joint Committee on Taxation to issue a report to the Chairman. The deadline for this report is April 15th. The subject areas are 1) real estate, 2) pensions and retirement, 3) charitable and tax-exempt organizations, 4) financial services, 5) small businesses and pass-throughs, 6) energy, 7) education and family benefits, 8) international tax law, 9) debt, equity and capital, 10) manufacturing and income, and 11) tax distribution.
The two co-chairs for the charitable working group are Rep. Dave Reichert (R-WA) and Rep. John Lewis (D-GA). Rep. Lewis is also the lead Democrat on the Oversight Subcommittee that has jurisdiction over the sector. The working groups are in the process of identifying their specific goals and will ramp up their efforts shortly thereafter. ACR will remain actively engaged with these Members and will continue to be a resource for all tax writers on issues important to charitable giving.
Charitable Hearing
As you know, on Thursday, February 14th, the Ways and Means Committee held a hearing examining tax reform and charitable contributions. Chairman Dave Camp opened the hearing by saying, “Because of the critical role that charities play, the Committee needs to hear directly from the charitable community before considering any proposals as part of comprehensive tax reform.” Ranking Member Levin also commented on the merits of the charitable deduction, calling it “sound tax policy” and not a loophole.
Dave Wills, president of the National Christian Foundation (NCF), testified on behalf of ACR. Wills, an activist in the philanthropic sector for over 20 years, underscored the Chairman’s remarks in his oral testimony. “The charitable deduction plays a crucial role in the health and wellbeing of our society. Simply put, a decrease in charitable deduction affects what the charity will receive. It is not the taxpayer who is harmed. It is those who need charitable services the most.”
During the question and answer portion, Members inquired about the range of options for altering the charitable deduction. keep reading >>
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Consider This +
An Active Week in Washington on the Charitable Deduction
By: Anne Urban, ACR
All is most certainly not quiet in Washington when it comes to taxes and the charitable community.
In a single week, we had the following:
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A marathon House Ways and Means Committee hearing on the charitable deduction. Over 40 witnesses (43 to be exact) testified for a hearing that ran seven hours long.
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A reintroduction of the “Buffett Rule” by Senate Democrats. Their proposal imposes a 30 percent minimum tax on those making more than $1 million and eliminates all deductions and credits for them EXCEPT for the charitable deduction.
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And finally, Ways and Means Chairman Camp announced the formation of 11 tax reform working groups. One of those groups is dedicated to “charitable/exempt organizations” and is due to be headed up by Congressmen Dave Reichert (R-WA) and John Lewis (D-GA). Reports from the working groups are due by tax day, April 15.
So what does this flurry of activity on the charitable sector mean going forward? keep reading >>
ACR Blog Roundup
For regular updates from our blog, follow us @ACReform on Twitter.
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Upcoming Events
ACR Summit for Leaders 2013
Programming of Foundations on the Hill
March 19, 2013
8:00 - 11:00 a.m.
Washington Marriott
Washington, D.C.
REGISTER NOW
2012 was like no other year for the charitable community. The sector faced the most significant threats to charitable giving in recent memory. But the battle is not over for the charitable deduction; Washington is gearing up for an even greater fight over the next few months.
The ACR Summit for Leaders will provide an insider’s look at the political landscape for. Experts will talk with us about future battles over the charitable deduction, troubling issues flying under the radar in states, and lessons learned from the fiscal cliff and how they can be used for the future.
It is more important than ever that foundation executives, nonprofit leaders, and others interested in public policy join us for the ACR Summit for Leaders to learn about what you can do to protect charity.
SESSIONS
Congressional Panel
With tax reform on the horizon, and the pressing need for deficit reduction, we expect 2013 to be a critical year for our sector. In this discussion, Congressional staff will provide an insider’s look at the legislative landscape on Capitol Hill for 2013 and what issues could impact the philanthropic community.
Hot State Issues
State and local governments are under increased budget pressure exacerbated by recent, and likely further, federal spending cuts. In many cases, states are curtailing tax breaks to raise more revenue, raising tax rates and fees, and are cutting their own spending. This panel will identify some of these trends.
Lessons Learned from the Fiscal Cliff
Even though Congress narrowly averted the fiscal cliff just a few months ago, the first half of this year is peppered with more federal budget deadlines. In December, we met with more than 125 lawmakers, along with other leaders of the Charitable Giving Coalition, to relay our message on the value of charitable giving incentives to policymakers. By explaining why our sector is different and the charitable deduction is unique, we kept direct cuts, caps, and limits to the charitable deduction at bay. We also utilized a successful multi-pronged media strategy to strengthen our message to lawmakers back home and in communities across the country.
For the next round, the stakes are even higher and both sides have already dug in. Tax deductions and credits are attracting more and more attention. What lessons from the fiscal cliff debate can we use going forward to protect the charitable deduction? This panel will explore all of these options.
Joint panel with ACR, Council on Foundations and the Forum of Regional Associations of Grantmakers
Topic to be announced soon.
Speakers will be announced soon.
NEW FOR 2013
ACR, the Council on Foundations and the Forum of Regional Associations of Grantmakers are co-sponsoring Foundations on the Hill (FOTH), occurring March 19-20. The ACR Summit for Leaders will be part of FOTH’s programming.
REGISTER NOW
(Note: Full FOTH program registration includes registration for the ACR Summit. Nonprofit organizations not eligible to participate in FOTH should select the “ACR Summit for Leaders Program only” option.)
Contact Patrice Lee at The Philanthropy Roundtable (plee@philanthropyroundtable.org or 202.822.8333) with questions about the ACR Summit for Leaders.
learn more >>
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