In an op-ed published in The Wall Street Journal, “The Cost of Taxing Philanthropy” Jim Nicholson, current Daniels Fund board member and former U.S. Secretary of Veterans Affairs, defends American generosity against harmful tax proposals.
Nicholson describes how the “one big, beautiful bill” would discourage philanthropy by increasing taxes on private charitable foundations. Instead of taxing foundations, he says, Congress should encourage charitable giving that strengthens our civil society.
Below are excerpts from the article “The Cost of Taxing Philanthropy”:
“America’s greatest safety net isn’t the government—it’s generosity. A proposal that passed the House last week as part of the “one big, beautiful bill” would increase the excise tax on private charitable foundations by up to sixfold. That would discourage the philanthropy that has long defined the American spirit. Why would conservatives, who have rightly fought against tax increases in the past, now take aim at private charities?
“Some believe that American philanthropy is dominated by left-leaning activists. But center-right foundations are successfully tackling America’s toughest problems. These groups emphasize empowerment, personal responsibility and the dignity of work, and they refuse to treat people as victims of circumstance.”
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“The nonprofit sector isn’t a substitute for government. But nonprofits should be allowed to continue doing what they do best: respond to community needs with compassion, innovation, speed and accountability. All of this would be hampered by the proposed tax hike
“Conservatives have long believed that dollars are better left in the private sector than in the hands of Washington bureaucrats. Instead of restricting the engines of an generosity, Congress should be celebrating and strengthening their ability to transform lives.”
Please continue reading at The Wall Street Journal.
