SUNBURY— The GOP tax cut plan in Washington is supposed to help Americans, with tax cuts, an increased child tax credit and a larger standard deduction, and it may do all of that, but with that larger standard deduction, the incentive to itemize charitable deductions will be reduced, worrying non-profit organizations who rely on middle class charitable donations.
“When it comes to small non-profits like United Way and other non-profits that we serve in the community we really rely on gifts from middle class donors in particular. What we are talking about here is the elimination of the charitable tax deduction for everyone in the country except the most wealthy” says Joanne Troutman, President and CEO of the Greater Susquehanna Valley United Way.
She says with the change to the standard deduction, the incentive to give more is gone, “Chances are there will be some people who don’t give enough to even itemize in the first place, but that being said there are plenty who do and we know and it has been shown through many studies that the deduction incentivizes people to give more.”
Proponents of the bill say with more money coming back to the middle class there will be more money to donate, but Troutman says donors may actually give less if they cannot deduct it from their taxes. You can hear the whole conversation for Friday’s On The Mark at WKOK.com. (Sarah Benek)