Are Churches and Charities in Trouble?

[21STEELERS21]

The biggest proposed change with tax reform is the effort to eliminate most filers from itemizing deductions.
They are eliminating itemizing by raising the standard deduction and dropping state taxes as an itemized
deduction. The result of this will be eliminating charity and religious contributions as a deduction for most filers
as well. Without tax favorable status, many of these contributions will drop.

 

[ark steel]

This may signal the death knell to the plan, silly as it sounds.

the proposed drop in corporate rates may also **** retirement plans.

 

[oneforthebus]

I thought this was supposed to simplify things but they are increasing reducing and capping some stuff and eliminating other stuff so I'm more confused than ever. Thought the rate cut on pass through income was going to help us but I just read it will exclude "professional services" businesses which I guess as a business consultant includes my husband. Eliminating the SALT deduction will kill us, although eliminating the AMT would have helped us some years.

I really have no freaking clue where we will come out on all of this. Gonna be a boon for accountants if it passes.

 

[Roy92040]

It is what it is. Now we'll know who is really generous and who are just looking for a tax break.

 

[DBS1970]

If we could just get politicians to give up the power of the tax code and implement the FairTax.

 

[ark steel]

I thought this was supposed to simplify things but they are increasing reducing and capping some stuff and eliminating other stuff so I'm more confused than ever. Thought the rate cut on pass through income was going to help us but I just read it will exclude "professional services" businesses which I guess as a business consultant includes my husband. Eliminating the SALT deduction will kill us, although eliminating the AMT would have helped us some years.

I really have no freaking clue where we will come out on all of this. Gonna be a boon for accountants if it passes.

I haven't read much about it or looked in-depth. What I was expecting is that, while the local/state tax deductions were going away, the standard deduction would increase such that a large group of people that deducted this piece would now have a higher standard deduction and not need the deduction anymore. Similar with any changes to the home deductions. We were very close to the standard deduction last year, so any increase in that should help us quite a bit. Our taxes are fairly simple, though, as we only have one income to worry about.

As to the original OP, from my experience many of the people who give to churches aren't making enough income to be deducting them anyway. I know that this doesn't count everyone, but, I think, overall, churches will be fine. The megachurches may be hurt, though. Charities are another thing entirely. Those where you offload old clothes and furniture will, probably, be OK as people will still need to get rid of this stuff. Those that rely on large deductible contribuitons may have issues.

 

[deljzc]

Only the wealthy and top 1% (let's say 350k and above) really abuse the charity giving deductions. Most of middle America ($100k and less) take our standard $500 deductions that don't need backup paperwork and move on. Most of middle America ($100k and less) also don't give to charities BECAUSE of tax breaks. They will still donate to their Church it they go. They will still drop off stuff at Goodwill.

Honestly, many charitably organization are just fronts anyway. We likely have too many. It's like when a disaster happens, with social media, you might get 10-20 different aid organizations all saying they are going to help. Kind of redundant. We need less charities and more oversight to make sure what they bring in is going towards their causes.

To me, anything to eliminate deductions is a good thing. Even capping the deduction on mortgage interest sounds good. We should make all deductions only for middle/upper middle class to encourage some acts (buying a house, maybe going to college, maybe getting health insurance, saving for retirement, etc.). But once you start making $500k or more, all those deductions go away or are very limited. Above that should almost be a flat tax rate and that's it with almost no way to get out of it.

 

[ark steel]

Only the wealthy and top 1% (let's say 350k and above) really abuse the charity giving deductions. Most of middle America ($100k and less) take our standard $500 deductions that don't need backup paperwork and move on. Most of middle America ($100k and less) also don't give to charities BECAUSE of tax breaks. They will still donate to their Church it they go. They will still drop off stuff at Goodwill.

Honestly, many charitably organization are just fronts anyway. We likely have too many. It's like when a disaster happens, with social media, you might get 10-20 different aid organizations all saying they are going to help. Kind of redundant. We need less charities and more oversight to make sure what they bring in is going towards their causes.

To me, anything to eliminate deductions is a good thing. Even capping the deduction on mortgage interest sounds good. We should make all deductions only for middle/upper middle class to encourage some acts (buying a house, maybe going to college, maybe getting health insurance, saving for retirement, etc.). But once you start making $500k or more, all those deductions go away or are very limited. Above that should almost be a flat tax rate and that's it with almost no way to get out of it.

except for your last two sentences, I am in agreement.

 

[SteelerInLebanon]

I am so far not seeing this plan as a tax break for the middle class. I don't mind giving the rich a tax break mind you but not without all "tax payers" getting one. This is hard to figure out right now as I currently itemize due to unreimbursed travel expenses like mileage. We need much more detailed information on this.

 

[Spike]

Death of electric cars?

Let the rich pay for their toys


House Republicans propose to scrap $7,500 electric vehicle credit

WASHINGTON - House Republicans are proposing to eliminate the $7,500 tax credit for electric vehicles, which could hurt automakers like General Motors Co, Tesla Inc and Nissan Motor Co, according to the bill made public on Thursday.

Current law allows automakers to use the credit, which phases out after an automaker hits 200,000 plug-in vehicles sold. Electric vehicles have expensive batteries that make them pricier than gasoline-powered vehicles.

Critics of the credit say electric vehicle buyers tend to be wealthier than average and do not need subsidies.

The House GOP plan also calls for repealing and phasing out other energy tax credits, including production and investment tax credit for solar, geothermal, fuel cell, wind energy and other clean energy projects.

http://www.reuters.com/article/us-u...00-electric-vehicle-credit-idUSKBN1D2282?il=0

 

[Steeltime]

House Republicans propose to scrap $7,500 electric vehicle credit

My tax dollars should never be used to favor one private manufacturer over another.

 

[IndySteel]

Doubling the standard deduction, eliminating the death tax, eliminating the AMT, cutting the corporate tax from 35% to 20% are all Yuge improvements. Anyone who is against those are just simply against American prosperity.

 

[steel dino]

It is what it is. Now we'll know who is really generous and who are just looking for a tax break.

I hear ya...

But its the poor people that benefit from the Charity, whether out of donators kindness or selfish intentions, that will be hurt the most.

Taking care of our own, for whatever the reason, is what separates us from other nations, and makes our country stronger and a better place to be..

 

[SteelerInLebanon]

Doubling the standard deduction, eliminating the death tax, eliminating the AMT, cutting the corporate tax from 35% to 20% are all Yuge improvements. Anyone who is against those are just simply against American prosperity.

Still sounds like the same old tax code. I thought they were going to rewrite it simplify it. Not sure I will get any benefit from the doubles deduction. And my tax rate looks to go up.


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[deljzc]

Still sounds like the same old tax code. I thought they were going to rewrite it simplify it. Not sure I will get any benefit from the doubles deduction. And my tax rate looks to go up.


Sent from my iPhone using Steeler Nation mobile app

They say you can file your taxes on a post card. That sounds simple to me.

 

[ark steel]

I guess a lot of resistance will be coming from those "representatives", even GOPers of the high-tax states. I guess they partially sell their ludicrous tax rates as being federally deductible. Still seems like, for the majority of people an increase in the Standard deduction would offset this loss.

They could make quite a bit of hay by making any healthcare costs deductible, regardless of what % of your income it is and/or whether you itemize or not.

 

[RollRed]

Doubling the standard deduction, eliminating the death tax, eliminating the AMT, cutting the corporate tax from 35% to 20% are all Yuge improvements. Anyone who is against those are just simply against American prosperity.

Why in the **** should inheritance not be taxed? If I gotta give the government 15% of my measly little salary every year ... which I worked for no less.... why shouldn’t some rich guy’s son or daughter get taxed on the money that’s left to them? Is it not income? I’m not saying it should be as high as it’s been, but I see no reason why it should not be taxed at whatever rate a person who earned the same amount working would pay.

 

[Spike]

Tesla Stock Plunges $5.5B as Model 3 Suffers 6-Month Delay

The value of Tesla Inc. stock plunged by about $5.4 billion over a 48-hour period this week as the company declared a large quarterly loss and finally acknowleded that deliveries of its high-volume Model 3 will be delayed by at least 6 months.

Tesla (OTC: TSLA) has only made a profit in one quarter of its 14-year existence, and that was only due to selling federal and state tax credits to traditional auto manufactures and others that actually do make taxable profits.

http://www.breitbart.com/california...lunges-5-5b-as-model-3-suffers-6-month-delay/

 

[Spike]

Republicans cut tax break for NFL, let churches pick sides in political elections

The NFL would lose its ability to claim tax breaks for stadiums, colleges and universities would have to start paying taxes on massive endowments, and house “flippers” could no longer shield their income from the taxman under House Republicans’ proposed tax bill, which takes aim at a number of quirks that have developed over the years.

Republicans also settled some scores with the bill, including freeing churches from rules that prevent them from taking a stand in political elections and halting illegal immigrants’ ability to claim several major tax credits.

The changes produce tens of billions of dollars in savings a year — money that Republicans poured back into the tax code to reduce rates for lower-income Americans and to cut business taxes.

http://www.washingtontimes.com/news/2017/nov/2/gop-bill-slashes-tax-break-nfl-pro-sports-stadiums/

 

[ark steel]

Why in the **** should inheritance not be taxed? If I gotta give the government 15% of my measly little salary every year ... which I worked for no less.... why shouldn’t some rich guy’s son or daughter get taxed on the money that’s left to them? Is it not income? I’m not saying it should be as high as it’s been, but I see no reason why it should not be taxed at whatever rate a person who earned the same amount working would pay.

Because it was already taxed when it was earned?

 

[deljzc]

Republicans cut tax break for NFL, let churches pick sides in political elections

The NFL would lose its ability to claim tax breaks for stadiums, colleges and universities would have to start paying taxes on massive endowments, and house “flippers” could no longer shield their income from the taxman under House Republicans’ proposed tax bill, which takes aim at a number of quirks that have developed over the years.

Republicans also settled some scores with the bill, including freeing churches from rules that prevent them from taking a stand in political elections and halting illegal immigrants’ ability to claim several major tax credits.

The changes produce tens of billions of dollars in savings a year — money that Republicans poured back into the tax code to reduce rates for lower-income Americans and to cut business taxes.

http://www.washingtontimes.com/news/2017/nov/2/gop-bill-slashes-tax-break-nfl-pro-sports-stadiums/

The house flipping thing is why Realtors and the Homebuilders Associations are out in force. Not because of their bullshit "house values will fall" rhetoric.

This tax plan is by definition a good thing just by judging from those lobbyist groups that have been running Washington forever and are now against it.

 

[tapeANaspirin2it]

Why in the **** should inheritance not be taxed? If I gotta give the government 15% of my measly little salary every year ... which I worked for no less.... why shouldn’t some rich guy’s son or daughter get taxed on the money that’s left to them? Is it not income? I’m not saying it should be as high as it’s been, but I see no reason why it should not be taxed at whatever rate a person who earned the same amount working would pay.

isn't the issue that the inheritance tax basically taxing the money twice? The heir has to pay the inheritance tax and then they also have to include it in their income tax so it is taxed twice. Taxed 3 times if you consider the person who left it had already paid income tax on it.

 

[IndySteel]

Why in the **** should inheritance not be taxed? If I gotta give the government 15% of my measly little salary every year ... which I worked for no less.... why shouldn’t some rich guy’s son or daughter get taxed on the money that’s left to them? Is it not income? I’m not saying it should be as high as it’s been, but I see no reason why it should not be taxed at whatever rate a person who earned the same amount working would pay.

Because, you jealous puke, it’s already been taxed. If a person saves his hard earned money and leaves it to his family it should not be taxed Again. The government already got theirs. If you leave your remaining dollar to someone would you expect them to pay tax on it, after you already did?

 

[bmoritz]

Why in the **** should inheritance not be taxed? If I gotta give the government 15% of my measly little salary every year ... which I worked for no less.... why shouldn’t some rich guy’s son or daughter get taxed on the money that’s left to them? Is it not income? I’m not saying it should be as high as it’s been, but I see no reason why it should not be taxed at whatever rate a person who earned the same amount working would pay.

No, it's not income, and it was already taxed. What makes you think the govt has a right to it?

 

[RollRed]

No, it's not income, and it was already taxed. What makes you think the govt has a right to it?

Yes .... the person that earned it was taxed on it. You could say the same thing about any employer that has an employee that he gives a paycheck to every week. The employer earned the money through the operation of his or her business and is now going to give some of that earned money to the employee. Income is income.... why should it not be taxed just because it came from a family member.