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Why Tax Reform is not easy
Client always asking with a grin "won't the new tax law put you out of business?" Which I always reply "The smart cleints will always seek professional help". Here is why. The recent increase in standard deductions has put the industries, that rely on people's motivation to get a tax deduction, in panic mode. Charities, mortgage brokers, realtors, investment advisors and the like hate the fact a larger standard deduction make people feel that giving to charity or owning a home is no longer a benefit because they can't write it off. So what happens, as it has always had, the special interests and lobbyists for these affected groups run off to Washington to get their tax advantage back First in line appears to be the charitable organizations. I can imagine that investment advisors, airline industry and realtors are not too far behind. So all of this talk about "reform" is much ado about nothing.
Proposed legislation would provide for unlimited above-the-line charitable contribution deduction
The bill would address concerns that changes made by the Tax Cuts and Jobs Act (TCJA; P.L. 115-97, 12/22/2017) will result in fewer taxpayers itemizing their deductions, reducing the tax incentive to make charitable contributions. These changes include, for tax years beginning after 2017 and before 2026, significantly increased standard deductions and new limitations on deductions for state and local taxes and for mortgage interest.
JON B CHESTER | 05/22/2018