Clyburn's plan to save taxes on non-profit organizations could become political


Democrats controlling the US House and Jim Clyburn exerting his influence as majority whip, the US Congressman encourages the repeal of a law that, for the first time, imposes taxes on non-profit organizations, including places of worship.

How Clyburn, the third most powerful Democrat in the House, approaches his bill could determine whether he can provide a solution to the problem of taxation.

Clyburn will have allies in some Republicans, who are coming back to the non-profit tax reversal included in their 2017 tax law. Nevertheless, it is feared that Clyburn, rather than working from the On the other side of the corridor, could introduce a more partisan bill that would alienate Republicans and not win the support of the Senate controlled by the GOP.

"It's great to introduce this bill, but this bill is not the most bipartisan way to do it," said Galen Carey, vice-president of government relations at the National Council of Evangelicals, who met Monday with members of Clyburn's staff.

"We encouraged them to think maybe to talk to (Republicans) and see if they can find a bipartisan solution. But I do not think it's going to happen that way. "

The "Charities and Places of Worship Tax Ban Act", introduced by Clyburn last summer and which plans to reintroduce it as early as next week, would overturn a Little known provision of the "2017 Act on the Reduction of the Tax on Employment and Employment", which Republicans passed without democratic support.

This provision requires non-profit organizations, charities and religious centers to pay a 21% tax on certain "marginal" benefits offered to employees, most often parking spaces.

Non-profit organizations have long been exempt from all taxes, so this requirement has taken organizations by surprise. Many groups were unprepared when they discovered that they suddenly owed money to the government.

Legislators were also alarmed to learn the new tax: it was included in the massive reform legislation at the 11th hour to help offset the estimated $ 1.5 trillion bill, without debate or extensive consultation with members or stakeholders prior to the invoice being signed.

"I'm responding to the outcry from non-profit organizations and places of worship to alleviate this onerous and unexpected tax burden," Clyburn said in a statement. "Our solution must be as responsible in solving this problem as Republicans have been irresponsible for creating it."

The Democrat also tweeted on Monday "this tax hike on places of worship and non-profit organizations is one of the many inexcusable consequences of the GOP tax swindle".

Clyburn's rhetorical outbursts irritate Republicans, who defended the tax bill as the supreme asset of the first two years of President Donald Trump's administration.

"Starting a conversation about a" GOP tax scam "amounts to not starting a conversation at all," said US Senator Tim Scott, R-South Carolina, one of the architects of the 2017 tax bill that stated that he supported a "resolution" to the tax crisis facing non-profit organizations, either through legislation or by following Treasury Department guidelines.

The version of the bill that Clyburn had introduced at the previous Congress also called for increasing the corporate tax rate from 22% to 22%, in order to compensate for the revenue that would be lost at the time of the repeal of the tax on non-profit organizations. The Joint Committee on Taxation estimated last year that the cancellation of the tax on non-profit organizations would increase debt by $ 1.7 billion over 10 years.

While most Democrats in the House would have no problem supporting the corporate tax increase, it would be a non-strategist for Republicans who control the Senate and largely oppose the increased taxes.

If the corporate tax increase remains in Clyburn's bill, this could be a problem, said Evangelical Council Chair for Financial Responsibility Dan Busby.

"We'd probably manage with rhetoric," Busby said. "The biggest concern would be fixing a remuneration in any repealing legislation."

A spokesman for Clyburn said Tuesday that the congressman was looking into whether the repeal of the tax on nonprofit organizations could be paid by increasing the corporate tax rate of less than 1%.

Clyburn seeks to overturn the non-profit tax responsibly, said the spokesman, unlike Republicans whose own proposals to repeal the provision did not include countervailing tax increases, but rather a "burden" which weighs heavily on our children and our grandchildren ".