Tax Law No Reform For Some Charities
No bill emanating from Congress is perfect. Given the politics involved and the complexity of implementing seemingly simple ideas, that ought to be obvious.
So it is with the comprehensive tax reform law enacted last year. It has been good for the vast majority of Americans. The surging economy is proof of that.
But the law contains a few of what we will term unintended consequences. At least, we hope no one in Congress intended the detrimental effects to some that are becoming evident now.
One unpleasant consequence of the law is that, for the first time, churches and other nonprofit organizations will have to pay federal taxes on some benefits they provide for employees. One estimate is that will cost $1.3 billion a year.
Much of the charitable work accomplished in our nation is done by churches of all denominations and other nonprofit groups. Taking that much out of their coffers will mean the good they do, often for the least fortunate in our society, will suffer.
President Donald Trump and Congress should reconsider the objectionable section of the new tax law. It and other regrettable oversights ought to be corrected as soon as lawmakers can craft a bill.