Republican tax law hits churches
Source: Politico
Trumps Tax Cuts for the Rich Impose a Hidden Tax on Faith-Based Orgs the Religious Right Is Furious
Some nonprofits could start paying taxes for the first time.
By BRIAN FALER 06/26/2018 05:05 AM EDT
Republicans have quietly imposed a new tax on churches, synagogues and other nonprofits, a little-noticed and surprising change that could cost some groups tens of thousands of dollars.
Their recent tax-code rewrite requires churches, hospitals, colleges, orchestras and other historically tax-exempt organizations to begin paying a 21 percent tax on some types of fringe benefits they provide their employees.That could force thousands of groups that have long had little contact with the IRS to suddenly begin filing returns and paying taxes for the first time.
Many organizations are stunned to learn of the tax part of a broader Republican effort to strip the code of tax breaks for employee benefits like parking and meals and say it will be a significant financial and administrative burden.
It also means political peril for lawmakers, many of whom were surely unaware of the provision when they approved the tax plan. Churches tax-exempt status, in particular, has long been considered sacrosanct and Republicans are relying on the faithful to back them in the November elections.
Read more: https://www.politico.com/story/2018/06/26/republican-tax-law-churches-employees-670362
sandensea
(21,664 posts)theophilus
(3,750 posts)dameatball
(7,399 posts)mountain grammy
(26,647 posts)dameatball
(7,399 posts)mountain grammy
(26,647 posts)Initech
(100,100 posts)Thekaspervote
(32,793 posts)AlexSFCA
(6,139 posts)NewJeffCT
(56,829 posts)would that count as benefits that they get from the church?
jmowreader
(50,562 posts)elleng
(131,085 posts)Guess trump's not the only one who doesn't read.
nycbos
(6,037 posts)Whomp Whomp here?
riversedge
(70,299 posts)what a nightmare!
Many nonprofits say they are confused over how exactly the tax is supposed to work.
Churches and other groups want to know how they are supposed to go about calculating the value of things like parking spaces for employees. Some wonder if the garages provided as part of clergy residences are now taxable.
Other nonprofits have their own questions.
Universities want to know if the bus services they provide for faculty and students are taxable and how they figure out how much they owe. Orchestras want to know how to treat musicians who may perform in different locations.
At what point is something a travel reimbursement? And at what point is it a commuter benefit? said Heather Noonan, vice president for advocacy at the League of American Orchestras.
Treasury is now working on regulations spelling out the details of how the tax will work, though the groups are supposed to have already been paying the tax. It took effect Jan. 1 and nonprofits are supposed to pay it quarterly.
A host of groups, including the Boys & Girls Clubs of America, Goodwill Industries, the YMCA and the National Council of Nonprofits are demanding the tax at least be delayed, saying it is unfair to ask them to be paying a levy they dont understand.
Earlier this month, Rep. Michael Conaway (R-Texas) introduced legislation to kill the tax.
dameatball
(7,399 posts)BumRushDaShow
(129,425 posts)Will those planes or mansions or high-end cars be considered a "fringe benefit"?
DBoon
(22,397 posts)Can't let workers get tax breaks. Have to to reserve those for wealthy investors.
Liberalagogo
(1,770 posts)Rebl2
(13,549 posts)churchs should have always been taxed. We have one in the Kansas City area that has multiple churches around the metro area. If they can afford to build multiple churches and buy a million dollar organ, they can afford to pay taxes.
BigmanPigman
(51,626 posts)gets my donations! That is money well spent. Keep religion and politics separate.
packman
(16,296 posts)I wish they (and that includes Dems) had done it long ago.
riversedge
(70,299 posts)community organizations are running on shoestring budgets as it is. It is these small community minded places that are going to gt hit hard.