Not a glitch.

GOP Tax Law
Republicans can add another 600 organizations to their list of Americans who are speaking out against GOP tax scam. Today’s Politico’s Morning Tax walks through how the law imposes a 21% tax on churches, colleges, and non-profits, which will be “a significant financial and administrative burden.”  In their effort to rush the bill through Congress before anyone knew what was in it, the GOP targeted churches and colleges. This wasn’t a glitch that requires a fix, they admit it was intentional, and something tells us that it is not going to go over well with their constituents. Key points:
 
It seems the government is squeezing some profits out of nonprofits…. a widely overlooked provision of the Tax Cuts and Jobs Act, H.R. 1 (115), imposes a 21 percent tax on some types of fringe benefits that churches, colleges and other traditionally tax-exempt organizations provide their employees. ‘Many groups are stunned to learn of the tax, and say it will be a significant financial and administrative burden,’ Brian Faler writes.”

The tax, which hits things like commuting subsidies, could also be politically perilous for Republicans, who pushed the tax overhaul through Congress late last year with nary a Democratic vote. More than 600 churches and other groups recently signed a petition demanding its repeal. What we’re talking about is an income tax on the church for providing parking to its employees — that’s what we’re talking about,’ Mike Batts, chairman of the board of the Evangelical Council for Financial Accountability, which is circulating the petition, told Brian.”

“The idea behind the tax was to put nonprofits on the same footing as for-profit businesses, which saw tax breaks for their workers’ fringe benefits trimmed in the tax law to defray some of the cost of its tax cuts. ‘Providing this greater parity helps to reduce the extent to which decisions about the elements included in the employee compensation package are driven by tax considerations,’ said Rob Damschen, a spokesman for House Ways and Means Chairman Kevin Brady.”
Issues: