“Assuming this deal gets signed into law, it’s a good day for charities,” said Steve Taylor, senior vice president of public policy for United Way Worldwide (UWW). In addition to the repeal of the transportation tax, Taylor pointed to an increase of $3.5 million for AmeriCorps, a $5-million increase for the emergency Food and Shelter Program, and $7-million increase for the Volunteer Income Tax Assistance (VITA) program.
Lots of tax policy advocates were disappointed that the tax deal was relatively modest, Taylor said, but it’s actually good news that there may be another tax bill next year or in 2021. That could be a vehicle for a universal charitable deduction or Earned Income Tax Credit and Child Tax Credit expansion, he said.
“What the repeal shows is that when the charitable sector all comes together around an issue, Congress will listen,” Taylor said. “That’s good news for our efforts to expand the charitable deduction.”