Tuesday, February 5, 2019

House Majority Whip Renews Push to Repeal Taxation of Qualified Fringes as UBIT

Clyburn
House Majority Whip James Clyburn
is renewing efforts to repeal the recent change to UBIT that would tax charities on the amount of qualified transportation fringes provided to employees.  From McClatchy

With Democrats in control of the U.S. House and Jim Clyburn wielding influence as majority whip, the S.C. congressman is pushing to repeal a law that imposes, for the first time, taxes on nonprofits — including places of worship.  How Clyburn, the third most powerful House Democrat, approaches his legislation could determine whether he is able to deliver a solution to the taxing problem.  Clyburn will have allies in some Republicans, who are coming around to reversing the nonprofit tax they included in their 2017 tax law. Still, there are worries that Clyburn, rather than work across the aisle, could introduce a more partisan bill that alienates Republicans and won’t win support in the GOP-controlled Senate.  “It’s great that they are going to introduce this bill, but this particular bill isn’t 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 of maybe talking to (Republicans) and seeing if they can work out something bipartisan. But I don’t think that’s how it’s going to go down.”  The “Stop the Tax Hike on Charities and Places of Worship Act,” which Clyburn put forward last summer and plans to reintroduce as early as next week, would overturn a little-known provision in 2017’s “Tax Cuts and Jobs Act,” which Republicans passed without Democratic support.

Clyburn's op/ed regarding his bill appears in several newspapers and says:

It is well known that the tax bill passed last Congress with only Republican votes gave trillions of dollars in tax cuts to corporations and the wealthy on the backs of America's working families. What is not as well known is that to pay for that massive tax cut, which is still projected to raise the national debt by about $2 trillion over the next 10 years, Republicans placed a new tax on places of worship and charitable organizations.  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. My bill, the Stop the Tax Hike on Charities and Places of Worship Act, would accomplish this goal.  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.  The new tax forces nonprofit organizations to pay 21 percent of the value of so-called fringe benefits provided to employees. In the case of the affected nonprofit organizations, this generally means parking, other transportation and perhaps an occasional meal.  The tax threatens to cost charities and places of worship tens of thousands of dollars.

 

Darryll K. Jones

 


Read more here: https://www.mcclatchydc.com/news/politics-government/congress/article225228235.html#storylink=cpy

Read more here: https://www.mcclatchydc.com/news/politics-government/congress/article225228235.html#storylink=cpy

https://lawprofessors.typepad.com/nonprofit/2019/02/house-majority-whip-renews-push-to-repeal-taxation-of-qualified-fringes-as-ubit.html

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