Lawmakers Urge IRS to Rescind Proposed SALT Regs

Preserve Charitable Programs In Your State!

Sign Bipartisan Letter to IRS Urging Cancellation of Upcoming Charitable Deduction Rule

If IRS Gets Its Way, Taxes Will Go Up

Signed on: Reps. Peter King, Tom Suozzi, Jeff Van Drew

Dear Colleague,

Please join me in urging the IRS to rescind Reg. 112176-18, a proposed rule that would restrict the effectiveness of contributions to charitable programs across the country.

If Congress had intended to eliminate long-existing programs benefiting from the Charitable Deduction, it surely would have included specific language to that effect in P.L. 115-97. The law enacted in December 2017 includes no reference to new limitations on the Charitable Deduction that you have proposed in this regulation.

Given that more than one hundred of these charitable programs already exist in thirty-three states, if it so intended, Congress would have enacted clear and explicit legislative language to issue such regulations. Instead, the IRS's regulatory overreach will send taxes up for many of your constituents.

Many of these charitable programs have existed for decades and work to combat countless social problems, ranging from helping fund rural hospitals to improving our schools. For instance, Alabama and other states offer a one hundred percent deduction through the Charitable Deduction program for tuition scholarships. Some have recently been enacted by states, including in New Jersey, as a means to reduce taxation and avoid double taxation of income by the federal government. They have become crucial funding mechanisms for families, entities, and communities. Such a significant change requires explicit Congressional action, particularly as this represents a significant tax increase on many Americans in at least thirty-three states.

For decades, the IRS and courts have allowed these programs to exist. Now that our states and districts want to cut taxes for our residents, the IRS suddenly wants to reverse decades of precedent and court cases. This just reinforces the validity of our programs.

Please join me in urging the IRS to stop these efforts to increase taxes and repeal their rule. To sign this letter, or if you have any questions, please contact Josh Fendrick at joshua.fendrick@mail.house.gov. Deadline to sign on is 3PM Wednesday, April 10th.

Sincerely,

Josh Gottheimer
Member of Congress

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** Text of Letter **

 April XX, 2019

The Honorable Charles Rettig
Commissioner
Internal Revenue Service
1111 Constitution Avenue, NW
Washington, D.C. 20224

We write to you regarding the recent Internal Revenue Service (IRS) proposed rulemaking restricting the Charitable Deduction (Reg. 112176-18). While we appreciate the Agency's efforts to modernize regulations, this rulemaking is contrary to Congress's intent and is arbitrary and capricious. We urge you to rescind this Charitable Deduction ruling.

If Congress had intended to eliminate long-existing programs benefiting from the Charitable Deduction, it surely would have included specific language to that effect in P.L. 115-97. The law enacted in December 2017 includes no reference to new limitations on the Charitable Deduction that you have proposed in this regulation. Given that more than one hundred of these charitable programs already exist in thirty-three states, if it so intended, Congress would have enacted clear and explicit legislative language to issue such regulations.

Many of these charitable programs have existed for decades, see attached, and work to combat countless social problems, ranging from helping fund rural hospitals to improving our schools. For instance, Alabama and other states offer a one hundred percent deduction through the Charitable Deduction program for tuition scholarships. Some have recently been enacted by states, including in New Jersey, as a means to reduce taxation and avoid double taxation of income by the federal government. They have become crucial funding mechanisms for families, entities, and communities. Such a significant change requires explicit Congressional action, particularly as this represents a significant tax increase on many Americans in at least thirty-three states.

Additionally, we believe the structure of your regulation to be arbitrary and capricious, both in terms of the underlying principle as a tax policy and its details. The threshold creates a tax principle that permits some charitable programs to exist, while others would be denied. Thus, it allows government bureaucrats to pick winners and losers based on illegitimate reasons or partisan politics.

For decades, the IRS and courts have allowed these programs to exist in thirty- three states. Now that our states and districts want to cut taxes for our residents, the IRS suddenly wants to reverse decades of precedent and court cases. This just reinforces the validity of our programs.

It is imperative that we work together to get our tax policy right and save our taxpayers money. We look forward to your response on this important matter and urge you to stop these efforts to increase taxes.

Sincerely,