Nonprofits Fear House Republican Tax Bill Would Hurt Charitable Giving

NPR reports:

House Republicans say the tax bill they introduced Thursday will grow the economy, create jobs and simplify tax returns, in part by eliminating tax deductions.

"Over 90 percent of Americans will be able to fill out their taxes on a postcard. That's what simplicity means," House Majority Whip Steve Scalise said.

But charities and nonprofit groups say that simplicity comes with a price. Even though Republicans promise to preserve the deduction for charitable donations, these groups say other proposed changes in the bill will discourage giving.

Steve Taylor, senior vice president and counsel for public policy at United Way Worldwide, notes that about a third of taxpayers currently itemize their deductions, including for charitable donations.

"Under this new proposal, only about 5 percent of people will itemize their taxes," he says. "What that means is effectively millions of Americans that currently claim the charitable deduction will lose it."

Some people really do like the status quo.