Charitable Contributions Reform Act

Today, the federal tax code allows for the deduction of certain charitable contributions when the taxpayer itemizes their deductions on their annual federal tax return. This results in a reduction of the gross taxable income and, in effect, can reduce the amount of federal tax by the amount contributed times the tax rate for that income bracket. For example, if a taxpayer contributes $1,000 to an eligible charity and the tax rate for their income level is 25%, the taxpayer can enjoy a tax credit of $250 (which might also result in a tax refund of that amount).

The Charitable Contributions Reform Act (CCRA) is an initiative to replace the reduction of gross taxable income by the amount of the charitable contribution with a reduction of the tax paid or due instead. For example, if that same taxpayer from the example above contributes $1,000 to an eligible charity and the tax rate for their income level is 25%, the taxpayer would enjoy a tax credit of $1,000 – the same amount as their charitable contribution.

Charitable contributions reform is necessary in order to replace bloated federal safety net programs in whole or part with efficient locally administered programs that are more efficient, targeted and effective – in turn having a dramatic positive effect on federal debt reduction. If you wish to volunteer to help our efforts to enact charitable contributions reform, please send a note to ccra@tnar21.org.

CCRA Draft Framework Now Available!

We are happy to announce the availability of the draft framework for the Charitable Contributions Reform Act. This is the first step in drafting CCRA legislation so that it’s available for sponsorship and downstream activities. Please forward any comments, suggests or offers to help to┬áto ccra@tnar21.org.

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