Source: The Washington Post
Thanks to National Council of Nonprofits for Sharing!
At the heart of the GOP tax plan is a push toward simplification that could have unintended consequences, potentially hurting charities — particularly those that depend on donations from middle-class donors.
To fulfill a long-held promise to make taxes simpler, the plan would end itemization for most Americans who use it today, by increasing the standard deduction. About 30 percent of taxpayers who file returns currently itemize — and the prospect of that change has triggered a strong behind-the-scenes campaign from charities seeking to make sure the tax incentive continues to be used.
According to an Urban-Brookings Tax Policy Center analysis of a plan with similar elements, the 45 million households that would itemize deductions under the current rules in 2017 would drop to just 7 million.