A new analysis of the Tax Cuts and Jobs Act indicates a wide range of negative effects that would have significant impacts on the ability of charitable nonprofits in Washington State to serve their communities.
The analysis, from our partners at the National Council of Nonprofits, highlights the key provisions of both tax reform proposals that are under consideration in Congress. Among the concerns highlighted are the curtailing of the 100-year-old tax incentive for charitable giving, the potential to inject partisan politics into the work of nonprofits, imposition of new taxes on tax-exempt organizations to pay for tax cuts, and increasing the deficit to such a point that federal, state, and local governments could be adversely affected for more than a generation. These and other challenges are outlined in Comparison of House and Senate Tax Bills and Impacts on Nonprofits.
“The current House and Senate versions of tax reform will be devastating for Washington’s communities,” said Washington Nonprofits Executive Director Laura Pierce. “Nonprofits are already feeling the squeeze of fewer public resources to meet rising service demands. But now Congress is positioning itself to pass a tax package that sharply decreases charitable giving because of the curtailing of the charitable deduction. Worse, the House tax reform plan will lead to the destruction of the public’s trust in nonprofits’ work if partisan politics are allowed to override our missions. These competing forces are going to tear apart the community supports that Washington State’s nonprofits and houses of worship provide.”
Please contact Washington Nonprofits for additional perspective on how the tax bills will affect Washington State’s nonprofits and the people they serve in communities across the state.