January 16, 2018 - Douglas Myser

Tax law to hurt charities. The new tax law passed by Congress and signed into law by President Trump, is going to have a very negative impact on the amount charities collect. Many people are unaware of this, and the timing could not be worse. With increased numbers of Americans in homelessness and without health care, the need to charitable giving has never been greater. So this happened at this point in our history is something worth reflecting on. Tax law to hurt charities.

During the campaign trail, President Trump spoke about "making America first". Of putting the needs of our fellow citizens front and center, before any decisions were made, and then making decisions based on whether those policies would be good or bad for the citizens of America. Of course when the government puts a budget together, it has to prioritize its agenda, and then divide the pie accordingly.  That oftentimes leads to tough choices. How those choices are eventually made, defines the mindset of the current government, and may or may not also define the mindset of the populace.

The last thing we need are more people with financial difficulties, who end up on welfare or with tax problems, then needing to go to charities who have nothing to offer. Could that be a recipe for increased crime ?  So in analyzing many of these decisions, the greater good of our society needs to be taken into account, in the decision making process. How can the greater good be served by lowering the amount of contributions going to charities ?  Its not like you have heard any argument that charities are ripping anyone off. So how can the greater good be served ?

Mr. Cardinalli, head of Independent Sector, recently stated, "The tax law will now de-incentivize the heart of civic action in the United States." Those who fall backwards financially may have tax issues also, and need tax resolution services. They will certainly not benefit from this tax law. I am not talking about those who will get a small tax cut, but those destitute individuals who are on the brink of going into homelessness, that many of these charities service. If you need tax relief and want to look at tax relief options like the IRS Fresh Start Program, click the back link for more information and professional help.