Nov 28, 2019

Middle-class charitable givings drop following tax change

Photo: EVERSOFINE/Getty Images

Food banks and charities in the D.C. area are experiencing a steep decline in donations, making it harder for them to serve people in need, the Washington Post reports.

Why it matters: Middle-class families are donating less than previously following a 2017 tax code change led by Republicans. Meant to streamline the tax filing process, the change actually reduced the benefits they used to get from charitable deductions, the Post writes. Smaller charities rely on local residents to donate.

  • Meanwhile, richer Americans are either continuing to donate at the same right or have increased their contributions to hospitals and universities, notes the Post.

By the numbers: Charitable giving in the U.S. dropped from $295 billion in 2017 to $292 billion in 2018, according to the Post.

Go deeper: Charitable giving declined in 2018 thanks in part to the GOP tax overhaul

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The rise of DAFs: Tax breaks now, money for charity later

Data: National Philanthropic Trust; Chart: Axios Visuals

Billions of dollars are sitting in tax-free Donor-Advised Funds (DAFs) rather than going directly to charities, according to data from the National Philanthropic Trust.

What they are: A DAF "allows donors to make a charitable contribution, receive an immediate tax deduction and then recommend grants from the fund over time," the NPT explains.

Go deeperArrowNov 30, 2019

How Democrats want to change the energy tax code

Ways and Means Committee Chairman Rep. Richard Neal (D-Mass.). Photo: Bill Clark/CQ-Roll Call, Inc via Getty Images

House Democrats on the tax-writing Ways and Means Committee have unveiled draft legislation that would extend and/or expand a suite of tax credits for climate-friendly energy sources.

Why it matters: The tax code has historically been a driver of solar and wind power deployment, as well as electric vehicle sales, and much more.

Go deeperArrowNov 20, 2019

Joe Biden unveils $3.2 trillion tax plan

Photo: Scott Olson/Getty Images

2020 candidate Joe Biden on Wednesday unveiled a plan to raise $3.2 trillion over a decade from tax increases in order to pay for his climate and health care proposals, Bloomberg reports.

Why it matters: Biden's plan demonstrates the political divide within the Democratic Party. His plan is markedly different from the aggressive tax measures pitched by Sens. Elizabeth Warren and Bernie Sanders, who want to raise around $20 trillion in new taxes over the next decade.

Go deeperArrowDec 4, 2019