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JCT Analysis Confirms House Tax Reform Bill’s Negative Impact on Giving

Publication date: 
Wednesday, November 15, 2017

A memo from the Joint Committee on Taxation released this week confirms that increasing the standard deduction while keeping the charitable deduction as is, as H.R. 1 proposes, will result in far less charitable giving to American communities. Under the current law, JCT estimates that 40.7 million taxpayers who itemize will deduct charitable contributions totaling $241.1 billion in 2018. If H.R. 1 is enacted, JCT finds that only 9.4 million taxpayers who itemize will deduct charitable contributions totaling $146.3 billion in 2018. Without changes, H.R. 1 reduces the amount of charitable gifts that taxpayers deduct by nearly $100 billion. Keeping the charitable deduction amid other changes found in the House version of the Tax Cuts and Jobs Act (H.R. 1) will not protect charitable giving as we know it. The Charitable Giving Coalition, which the Forum is a lead partner, sent letters to members of the House Ways and Means Committee and Senate Finance Committee to inform them of the JCT findings. The letters are below.

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