BOSTON, December 13, 2017—Both the U.S. Senate and U.S House have recently passed separate but similar bills that make sweeping changes to the U.S. tax code. Some will have significant impact on the nonprofit sector, and its arts and cultural community members. Both bills are now in conference committee where Congressional leaders are reconciling differences between the bills to create a final one that will require another vote by the House and Senate. If that bill is approved by both houses of Congress, it will be sent to President Donald Trump to be signed into law. MASSCreative Executive Director released the following statement in response:
“We stand with Americans For the Arts and the Massachusetts Nonprofit Network in opposition to these bills. Both the House and Senate versions will harm the Commonwealth’s arts and cultural community and the people they serve.
“Both bills would keep the deduction for charitable contributions that have long benefitted nonprofit arts and cultural organizations by encouraging people to make tax-deductible donations to their favorite nonprofits. But significant increases to the standard deduction would likely result in far fewer people itemizing their deductions to take advantage of the charitable tax deduction.
The Tax Policy Center of the Urban Institute and Brookings Institution estimates that fewer than 13 million people would itemize their deductions as compared with approximately 46 million who do so now. That could result in a loss of up to $20 billion annually to nonprofit organizations across the country.
“Additionally, many artists and creative entrepreneurs count on deductions to offset their personal business expenses. By eliminating many of the items that could previously be deducted from their taxes, artists could see an increase in the amount of taxes they will owe under a new plan.
“Last, the House bill weakens the Johnson Amendment, which provides nonpartisan protections to charitable, religious and philanthropic organizations. By prohibiting nonprofits from endorsing political candidates or making financial contributions to them, nonprofits, such as arts organizations, are better able to collaborate in creative ways and work together to solve community problems.
“We strongly encourage Congressman Neal and his fellow conferees to protect the Johnson Amendment and keep the nonprofit sector out of electoral politics.”
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Founded in 2012, MASSCreative works to build a more vibrant, healthy, and equitable Massachusetts. MASSCreative works with artists, leaders, supporters, and partners of the arts, cultural, and creative community to advocate for the resources and support necessary for the sector to thrive. Nearly 400 arts and cultural organizations and working artists from across the Commonwealth are members of MASSCreative
