Washington, D.C. – U.S. House Majority Whip James E. Clyburn today reintroduced legislation to stop the Republican tax bill’s tax hike on charities, places of worship, and other nonprofit organizations. This bill would repeal the costly provision without shifting any financial burden to working American families or their children and grandchildren.
Last Congress, the Republican-passed Tax Cuts and Jobs Act of 2017 raised nearly $1.7 billion from places of worship and other nonprofits by applying the 21% unrelated business income tax to the value of certain so-called “fringe benefits,” such as parking and transit, provided to their employees. This tax could cost charities and places of worship tens of thousands of dollars each. The Stop the Tax Hike on Charities and Places of Worship Act will pay for the repeal of this harmful provision by raising the corporate tax rate by just three-hundredths of a percentage point, to 21.03%.
In this 116th Congress, more than 25 co-sponsors have signed on in support of this bill, and Senator Sherrod Brown has introduced companion legislation in the Senate.
Majority Whip James E. Clyburn
“Just as our country’s history is steeped in volunteerism and philanthropy to aid the less fortunate, so too is our tax code, giving tax-exempt status to organizations working to improve our communities. In enacting their tax bill, Republicans turned their backs on this important principle. Congress must repeal this new tax, and we should do so without adding another dime to the debt or an additional burden on America’s working families.”
Senator Sherrod Brown
“We cannot allow President Trump to hike taxes on our churches, charities and local community organizations in order to pay for handouts to millionaires and Wall Street. I am grateful to Congressman Clyburn for his leadership on this critical issue and am proud to fight alongside him to stop this tax hike. We need to throw out President Trump’s tax law and completely rewrite our tax code to put people first.”
Congresswoman Yvette Clarke
“Places of worship and nonprofits across Brooklyn are already struggling amid rising rents and decreasing donations. But President Trump decided to impose a new tax on them and the benefits they provide their employees. This common sense legislation helps workers keep their benefits, while also protecting charities and places of worship from new costs.”
Congressman Thomas Souzzi
“We can all debate the merits of the Republican tax bill, but there is not debate that the Republicans rushed the bill through in 51 days. As a result, there are dozens and dozens of mistakes and other unintended consequences. One definite consequence was that the Republicans put in a tax on religious and not-for-profit institutions. Now, hundreds of thousands not-for-profit’s, churches, synagogues, temples, and other places of worship throughout our country will have to pay their estimated taxes in March. Even more costly than the taxes the GOP tax bill is requiring them to pay will be the cost of hiring an accountant or lawyer to figure out how to do something none of them have done before – pay taxes as a tax-exempt organization! This is just one of dozens of bad results from the Republican tax bill and it needs to be fixed immediately.”
Congressman Steven Horsford
“Congress should make it easier for nonprofits and houses of worship to carry out their work, not burden them with new taxes. These organizations form the bedrock of our communities and we shouldn’t stick them with the bill for Republican tax giveaways to the wealthy. This tax hike is wrong and it’s unfair. I’ll keep working with my colleagues to stop it from hurting our charities and places of worship.”
Congresswoman Katie Hill
“As the former Executive Director of California’s largest homelessness services organization, I know that the tax hikes imposed on nonprofits and charities through the 2017 tax reform bill are unsustainable and hurt our most vulnerable populations. I am proud to stand alongside Whip Clyburn to stop the tax hike and allow these organizations to best support and advocate for our communities.”