Posted on February 14, 2013 by PM Team
Charitable Giving Coalition supporters testify to hearing on deductions
The House Committee on Ways and Means is holding a hearing today to examine the itemised deduction for charitable contributions as part of the Committee’s work on comprehensive tax reform.
“The
nation's budget crisis is undeniable, and that is precisely why non-profits and
our communities need more support, not less,” says Father Larry Snyder, president of Catholic
Charities USA.
Section 170 of the Internal Revenue Code in the US provides a
deduction to the roughly one-third of taxpayers who itemise their deductions
for charitable contributions. Certain limits apply to the deduction, such as
percentage-of-income limits and purposes for which contributions may be made as
well as an overall limitation on itemised deductions for taxpayers above
certain income thresholds.
Proposals to limit the deduction for charitable contributions
have appeared in recent years, in some cases as part of broader tax reform
proposals that lower rates and in other cases for the purpose of raising taxes
to fund specified levels of government spending. The Committee is holding
today’s hearing to allow stakeholders and members of the public the opportunity
to share their perspectives on the deduction and on various proposals to modify
it.
“Public charities and private
foundations perform invaluable services for our society, especially during this
time of economic slowdown and high unemployment,” commented
Committee Chairman Dave Camp announcing the hearing last week. “The Committee must hear directly
from the charitable community before considering any proposals as part of
comprehensive tax reform that might impact their ability to obtain the
resources they need to fulfil their missions.”
The
Charitable Giving Coalition, which represents private
and community foundations, their grantees and independent charities, is expecting several members to
testify at the hearing, while nearly all of its members will submit statements
for the record.
In anticipation of the hearing, the Coalition released a statement from Father Larry Snyder, president of
Catholic Charities USA, about the importance of charitable giving in America. "We are
grateful to Chairman Camp and the House Ways and Means Committee for conducting
this hearing. We know that elected officials on all sides are supportive of the
charitable sector's role in our communities and that they face tough choices in
addressing our fiscal challenges,” said Snyder. “Those tough choices cannot be
made to the detriment of communities that rely on us to heal, educate and
support millions of people every day. The Charitable Giving Coalition is
committed to helping policymakers make informed decisions. The nation's budget
crisis is undeniable, and that is precisely why non-profits and our communities
need more support, not less."
The Coalition has been campaigning against caps or limits
to the charitable tax deduction.