Each year I attend the American Association of Christian Schools National Legislative Conference (AACS NLC) held in early September in Washington, DC. This year’s conference included a focus on tax legislation important to Christian schools—and your help is needed to influence your legislators.
Universal Charitable Giving Act
Last year’s Tax Cuts and Jobs Act (TCJA) doubled the standard deduction—a good thing, but with a downside. Experts believe that charitable giving will decrease since itemizing deductions will be less appealing, reducing an incentive to give.
The Universal Charitable Giving Act would add a charitable deduction in addition to the standard deduction, up to approximately $2,100 for individuals and $4,200 for married couples. This would reestablish an incentive for charitable giving.
An in-depth analysis from the American Enterprise Institute is available here.
Would you encourage your legislators to become cosponsors of this bill? See the current cosponsors here.
LIFT for Charities Act
In simplifying exemptions, the TCJA unfortunately requires that non-profit groups pay some of the taxes that for-profit groups must pay.
While the IRS has not yet issued the specific regulations for these taxes, they are expected to require churches and Christian schools to pay a 21% tax on a variety of employee benefits such as tuition benefits for school employees and, for organizations such as Goodwill, transportation provided for employees.
LIFT, “Lessening Impediments from Taxes,” repeals the provision that requires the payment of these taxes.
While I was in Washington, we had good visits sharing our concerns at the offices of Representatives Trey Gowdy and Jeff Duncan and Senators Lindsey Graham and Tim Scott.
Would you see if your congressmen are cosponsoring these important bills and encourage them to do so if they are not already?