<div> Table T19-0063 Replace Itemized Deduction for Charitable Contributions with Deduction Available to All Taxpayers Baseline: Current Law Distribution of Change in Federal Tax Expenditure for Charitable Contributions by Expanded Cash Income Percentile, 2020 ¹ Tax Units with Benefit 4 Average Benefit Marginal Tax Benefit per Implied Change in Individual (thousands) (dollars) Percent Change in $100 of Contributions 6 Charitable Giving ($ billions) Expanded Cash Income After-Tax Income Percentile 2,3 5 Under the Under the Under the Change Change Change Elasticity = -0.5 Elasticity = -1.0 Proposal Proposal Proposal Lowest Quintile 2,290 2,330 * * 0.0 1.8 2.0 0.1 0.1 Second Quintile 9,380 9,910 30 30 0.1 5.1 6.5 0.4 0.9 Middle Quintile 15,710 17,670 120 140 0.2 8.9 12.0 1.6 3.2 Fourth Quintile 16,530 20,700 280 380 0.3 9.4 16.0 3.0 6.0 Top Quintile 12,250 21,200 590 2,280 0.2 4.2 26.0 4.2 8.4 All 56,150 71,810 160 420 0.2 5.7 21.0 9.2 18.5 Addendum 80-90 7,350 10,500 500 770 0.3 9.3 20.7 2.0 4.0 90-95 3,040 5,330 580 1,190 0.3 6.8 22.4 1.0 2.1 95-99 1,710 4,290 680 2,370 0.2 3.7 26.2 0.6 1.3 Top 1 Percent 160 1,080 1,270 24,060 0.1 0.9 29.9 0.5 1.0 Top 0.1 Percent * 110 3,260 138,720 0.0 0.6 28.6 0.2 0.4 Baseline Distribution of the Tax Benefit for Charitable Contributions by Expanded Cash Income Percentile, 2020 ¹ All Tax Units Tax Units with Benefit 4 Expanded Cash Income Percentile 2,3 Number (thousands) Percent of Total Total Contributions ($ billions) Average Benefit (dollars) Share of Total Benefit Marginal Tax Benefit per $100 of Contributions 5 Number (thousands) Percent of All Total Contributions ($ billions) Lowest Quintile 46,170 26.3 6.3 * * 0.1 40 0.1 * Second Quintile 39,080 22.2 16.9 * 0.3 1.4 530 1.4 2.3 Middle Quintile 35,250 20.1 36.1 20 1.7 3.2 1,960 5.6 7.9 Fourth Quintile 29,520 16.8 63.9 100 6.5 6.6 4,170 14.1 24.0 Top Quintile 24,620 14.0 200.9 1,690 91.5 21.8 8,950 36.3 164.1 All 175,860 100.0 324.4 260 100.0 15.3 15,660 8.9 198.5 Addendum 80-90 12,630 7.2 43.8 270 7.6 11.4 3,150 25.0 23.7 90-95 6,120 3.5 30.4 610 8.2 15.5 2,290 37.4 20.9 95-99 4,710 2.7 39.6 1,690 17.6 22.5 2,580 54.8 33.3 Top 1 Percent 1,160 0.7 87.1 22,790 58.1 29.0 920 79.7 86.1 Top 0.1 Percent 120 0.1 53.0 135,460 35.2 28.0 110 89.9 52.8   Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0319-1). Number of AMT Taxpayers (millions). Baseline: 0.2 Proposal: 0.2 * Non-zero value rounded to zero; ** Insufficient data (1) Calendar year. Baseline is the law in place for each year as of June 28, 2019. Proposal would: replace the itemized deduction for charitable contributions with a universal deduction. For more information on TPC’s baseline definitions, see:   http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm   (2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see   http://www.taxpolicycenter.org/TaxModel/income.cfm   (3) The income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2019 dollars): 20% $26,300; 40% $52,000; 60% $92,100; 80% $165,900; 90% $242,500; 95% $347,800; 99% $830,400; 99.9% $3,717,800.   (4) Tax units with benefit are tax units with a net benefit of $10 or more.   (5) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.   (6) Marginal tax benefit is calculated by increasing baseline charitable contributions by $100 and recomputing tax liability.     Table T19-0064 Replace Itemized Deduction for Charitable Contributions with Deduction Available to All Taxpayers for Contributions Above 1 Percent of AGI Baseline: Current Law Distribution of Change in Federal Tax Expenditure for Charitable Contributions by Expanded Cash Income Percentile, 2020 ¹ Tax Units with Benefit 4 Average Benefit Marginal Tax Benefit per Implied Change in Individual (thousands) (dollars) Percent Change in $100 of Contributions 6 Charitable Giving ($ billions) Expanded Cash Income After-Tax Income Percentile 2,3 5 Under the Under the Under the Change Change Change Elasticity = -0.5 Elasticity = -1.0   Proposal Proposal Proposal Lowest Quintile 2,230 2,270 * * 0.0 1.9 2.0 0.1 0.1 Second Quintile 8,980 9,510 20 20 0.1 5.1 6.5 0.4 0.9 Middle Quintile 13,560 15,520 70 90 0.1 8.8 12.0 1.6 3.1 Fourth Quintile 11,120 15,290 170 270 0.2 8.9 15.6 2.8 5.6 Top Quintile 3,320 12,270 -10 1,680 0.0 2.5 24.4 2.0 4.0 All 39,200 54,860 40 300 0.1 4.6 19.9 6.9 13.7 Addendum 80-90 3,230 6,380 250 520 0.2 8.1 19.5 1.7 3.5 90-95 790 3,080 190 800 0.1 5.4 20.9 0.8 1.6 95-99 -300 2,280 -120 1,570 0.0 1.5 24.0 0.1 0.2 Top 1 Percent -390 530 -3,430 19,360 -0.2 -0.8 28.2 -0.6 -1.3 Top 0.1 Percent -60 50 -16,920 118,540 -0.2 -0.6 27.4 -0.3 -0.5 Baseline Distribution of the Tax Benefit for Charitable Contributions by Expanded Cash Income Percentile, 2020 ¹ All Tax Units Tax Units with Benefit 4 Expanded Cash Income Percentile 2,3 Number (thousands) Percent of Total Total Contributions ($ billions) Average Benefit (dollars) Share of Total Benefit Marginal Tax Benefit per $100 of Contributions 5 Number (thousands) Percent of All Total Contributions ($ billions) Lowest Quintile 46,170 26.3 6.3 * * 0.1 40 0.1 * Second Quintile 39,080 22.2 16.9 * 0.3 1.4 530 1.4 2.3 Middle Quintile 35,250 20.1 36.1 20 1.7 3.2 1,960 5.6 7.9 Fourth Quintile 29,520 16.8 63.9 100 6.5 6.6 4,170 14.1 24.0 Top Quintile 24,620 14.0 200.9 1,690 91.5 21.8 8,950 36.3 164.1 All 175,860 100.0 324.4 260 100.0 15.3 15,660 8.9 198.5 Addendum 80-90 12,630 7.2 43.8 270 7.6 11.4 3,150 25.0 23.7 90-95 6,120 3.5 30.4 610 8.2 15.5 2,290 37.4 20.9 95-99 4,710 2.7 39.6 1,690 17.6 22.5 2,580 54.8 33.3 Top 1 Percent 1,160 0.7 87.1 22,790 58.1 29.0 920 79.7 86.1 Top 0.1 Percent 120 0.1 53.0 135,460 35.2 28.0 110 89.9 52.8   Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0319-1). Number of AMT Taxpayers (millions). Baseline: 0.2 Proposal: 0.2 * Non-zero value rounded to zero; ** Insufficient data (1) Calendar year. Baseline is the law in place for each year as of June 28, 2019. Proposal would: replace the itemized deduction for charitable contributions with a universal deduction for contributions above 1 percent of AGI. For more information on TPC’s baseline definitions, see:   http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm   (2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see   http://www.taxpolicycenter.org/TaxModel/income.cfm   (3) The income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2019 dollars): 20% $26,300; 40% $52,000; 60% $92,100; 80% $165,900; 90% $242,500; 95% $347,800; 99% $830,400; 99.9% $3,717,800.   (4) Tax units with benefit are tax units with a net benefit of $10 or more.   (5) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.   (6) Marginal tax benefit is calculated by increasing baseline charitable contributions by $100 and recomputing tax liability.     Table T19-0065 Replace Itemized Deduction for Charitable Contributions with Deduction Available to All Taxpayers for Contributions above 1.65 Percent of AGI Baseline: Current Law Distribution of Change in Federal Tax Expenditure for Charitable Contributions by Expanded Cash Income Percentile, 2020 ¹ Tax Units with Benefit 4 Average Benefit Marginal Tax Benefit per Implied Change in Individual (thousands) (dollars) Percent Change in $100 of Contributions 6 Charitable Giving ($ billions) Expanded Cash Income After-Tax Income Percentile 2,3 5 Under the Under the Under the Change Change Change Elasticity = -0.5 Elasticity = -1.0   Proposal Proposal Proposal Lowest Quintile 1,910 1,950 * * 0.0 1.9 2.0 0.1 0.1 Second Quintile 5,520 6,050 20 20 0.0 4.9 6.3 0.4 0.8 Middle Quintile 7,780 9,740 50 70 0.1 7.6 10.8 1.4 2.7 Fourth Quintile 6,320 10,490 120 220 0.1 7.5 14.1 2.3 4.7 Top Quintile -480 8,470 -240 1,450 -0.1 0.8 22.6 -0.3 -0.5 All 21,040 36,700 0 260 0.0 3.1 18.4 3.9 7.8 Addendum 80-90 1,310 4,460 150 420 0.1 6.3 17.7 1.3 2.7 90-95 -160 2,130 40 650 0.0 3.3 18.9 0.4 0.9 95-99 -1,070 1,510 -410 1,280 -0.1 -1.0 21.5 -0.5 -1.0 Top 1 Percent -550 370 -5,270 17,520 -0.3 -2.1 26.9 -1.5 -3.0 Top 0.1 Percent -70 40 -25,330 110,130 -0.3 -1.1 26.9 -0.5 -1.0 Baseline Distribution of the Tax Benefit for Charitable Contributions by Expanded Cash Income Percentile, 2020 ¹ All Tax Units Tax Units with Benefit 4 Expanded Cash Income Percentile 2,3 Number (thousands) Percent of Total Total Contributions ($ billions) Average Benefit (dollars) Share of Total Benefit Marginal Tax Benefit per $100 of Contributions 5 Number (thousands) Percent of All Total Contributions ($ billions) Lowest Quintile 46,170 26.3 6.3 * * 0.1 40 0.1 * Second Quintile 39,080 22.2 16.9 * 0.3 1.4 530 1.4 2.3 Middle Quintile 35,250 20.1 36.1 20 1.7 3.2 1,960 5.6 7.9 Fourth Quintile 29,520 16.8 63.9 100 6.5 6.6 4,170 14.1 24.0 Top Quintile 24,620 14.0 200.9 1,690 91.5 21.8 8,950 36.3 164.1 All 175,860 100.0 324.4 260 100.0 15.3 15,660 8.9 198.5 Addendum 80-90 12,630 7.2 43.8 270 7.6 11.4 3,150 25.0 23.7 90-95 6,120 3.5 30.4 610 8.2 15.5 2,290 37.4 20.9 95-99 4,710 2.7 39.6 1,690 17.6 22.5 2,580 54.8 33.3 Top 1 Percent 1,160 0.7 87.1 22,790 58.1 29.0 920 79.7 86.1 Top 0.1 Percent 120 0.1 53.0 135,460 35.2 28.0 110 89.9 52.8   Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0319-1). Number of AMT Taxpayers (millions). Baseline: 0.2 Proposal: 0.2 * Non-zero value rounded to zero; ** Insufficient data (1) Calendar year. Baseline is the law in place for each year as of June 28, 2019. Proposal would: replace the itemized deduction for charitable contributions with a universal deduction for contributions above 1.65 percent of AGI. For more information on TPC’s baseline definitions, see:   http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm   (2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see   http://www.taxpolicycenter.org/TaxModel/income.cfm   (3) The income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2019 dollars): 20% $26,300; 40% $52,000; 60% $92,100; 80% $165,900; 90% $242,500; 95% $347,800; 99% $830,400; 99.9% $3,717,800.   (4) Tax units with benefit are tax units with a net benefit of $10 or more.   (5) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.   (6) Marginal tax benefit is calculated by increasing baseline charitable contributions by $100 and recomputing tax liability.     Table T19-0066 Replace Itemized Deduction for Charitable Contributions with Deduction Available to All Taxpayers for Contributions above 2 Percent of AGI Baseline: Current Law Distribution of Change in Federal Tax Expenditure for Charitable Contributions by Expanded Cash Income Percentile, 2020 ¹ Tax Units with Benefit 4 Average Benefit Marginal Tax Benefit per Implied Change in Individual (thousands) (dollars) Percent Change in $100 of Contributions 6 Charitable Giving ($ billions) Expanded Cash Income After-Tax Income Percentile 2,3 5 Under the Under the Under the Change Change Change Elasticity = -0.5 Elasticity = -1.0   Proposal Proposal Proposal Lowest Quintile 1,240 1,280 * * 0.0 1.9 2.0 0.1 0.1 Second Quintile 3,990 4,520 20 20 0.0 4.3 5.7 0.4 0.7 Middle Quintile 6,060 8,020 50 70 0.1 6.7 9.9 1.2 2.4 Fourth Quintile 4,650 8,820 100 200 0.1 6.6 13.3 2.1 4.1 Top Quintile -1,800 7,150 -340 1,350 -0.1 -0.1 21.7 -1.4 -2.9 All 14,110 29,770 -20 240 0.0 2.2 17.5 2.3 4.5 Addendum 80-90 630 3,780 110 380 0.1 5.3 16.7 1.1 2.2 90-95 -510 1,780 -20 590 0.0 2.3 17.8 0.2 0.5 95-99 -1,310 1,270 -520 1,170 -0.1 -2.1 20.4 -0.8 -1.6 Top 1 Percent -610 310 -6,060 16,730 -0.4 -2.8 26.3 -2.0 -3.9 Top 0.1 Percent -80 30 -29,250 106,210 -0.4 -1.5 26.4 -0.7 -1.4 Baseline Distribution of the Tax Benefit for Charitable Contributions by Expanded Cash Income Percentile, 2020 ¹ All Tax Units Tax Units with Benefit 4 Expanded Cash Income Percentile 2,3 Number (thousands) Percent of Total Total Contributions ($ billions) Average Benefit (dollars) Share of Total Benefit Marginal Tax Benefit per $100 of Contributions 5 Number (thousands) Percent of All Total Contributions ($ billions) Lowest Quintile 46,170 26.3 6.3 * * 0.1 40 0.1 * Second Quintile 39,080 22.2 16.9 * 0.3 1.4 530 1.4 2.3 Middle Quintile 35,250 20.1 36.1 20 1.7 3.2 1,960 5.6 7.9 Fourth Quintile 29,520 16.8 63.9 100 6.5 6.6 4,170 14.1 24.0 Top Quintile 24,620 14.0 200.9 1,690 91.5 21.8 8,950 36.3 164.1 All 175,860 100.0 324.4 260 100.0 15.3 15,660 8.9 198.5 Addendum 80-90 12,630 7.2 43.8 270 7.6 11.4 3,150 25.0 23.7 90-95 6,120 3.5 30.4 610 8.2 15.5 2,290 37.4 20.9 95-99 4,710 2.7 39.6 1,690 17.6 22.5 2,580 54.8 33.3 Top 1 Percent 1,160 0.7 87.1 22,790 58.1 29.0 920 79.7 86.1 Top 0.1 Percent 120 0.1 53.0 135,460 35.2 28.0 110 89.9 52.8   Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0319-1). Number of AMT Taxpayers (millions). Baseline: 0.2 Proposal: 0.2 * Non-zero value rounded to zero; ** Insufficient data (1) Calendar year. Baseline is the law in place for each year as of June 28, 2019. Proposal would: replace the itemized deduction for charitable contributions with a universal deduction for contributions above 2 percent of AGI. For more information on TPC’s baseline definitions, see:   http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm   (2) Includes both filing and non-filing units but excludes those that are dependents of other tax units. Tax units with negative adjusted gross income are excluded from their respective income class but are included in the totals. For a description of expanded cash income, see   http://www.taxpolicycenter.org/TaxModel/income.cfm   (3) The income percentile classes used in this table are based on the income distribution for the entire population and contain an equal number of people, not tax units. The breaks are (in 2019 dollars): 20% $26,300; 40% $52,000; 60% $92,100; 80% $165,900; 90% $242,500; 95% $347,800; 99% $830,400; 99.9% $3,717,800.   (4) Tax units with benefit are tax units with a net benefit of $10 or more.   (5) After-tax income is expanded cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); estate tax; and excise taxes.   (6) Marginal tax benefit is calculated by increasing baseline charitable contributions by $100 and recomputing tax liability.     12-Nov-19 PRELIMINARY RESULTS http://www.taxpolicycenter.org Table T19-0067 Replace Itemized Deduction for Charitable Contributions with a Universal Deduction Baseline: Current Law Impact on Tax Revenue, 2020 1 Proposal 2020 ($ billions)   Replace Itemized Deduction for Charitable Contributions with Deduction Available to All Taxpayers -26.7 Replace Itemized Deduction for Charitable Contributions with Deduction Available to All Taxpayers for Contributions Above 1 Percent of AGI -8.6 Replace Itemized Deduction for Charitable Contributions with Deduction Available to All Taxpayers for Contributions above 1.65 Percent of AGI -0.8 Replace Itemized Deduction for Charitable Contributions with Deduction Available to All Taxpayers for Contributions above 2 Percent of AGI 2.4     Source: Urban-Brookings Microsimulation Model (version 0319-1). (1) Calendar year. Baseline is the law in place for each year as of June 28, 2019. Proposals would replace the itemized deduction for charitable contributions with a universal deduction. For more information on TPC’s baseline definitions, see: http://www.taxpolicycenter.org/taxtopics/Baseline-Definitions.cfm   </div>

TPC Estimates Impact of Replacing Charitable Deduction

Urban-Brookings Tax Policy Center

The Urban-Brookings Tax Policy Center on November 12 released estimates on the impact for 2020 of replacing the itemized charitable contribution deduction with a universal deduction available to all taxpayers or to those with contributions above a varying percentage of adjusted gross income.

The Urban-Brookings Tax Policy Center on November 12 released estimates on the impact for 2020 of replacing the itemized charitable contribution deduction with a universal deduction available to all taxpayers or to those with contributions above a varying percentage of adjusted gross income.