Trump’s tax bill could impact charitable giving, Ivy League admissions
Previously, “One Big, Beautiful Bill”, the bill, known as the Parliament and the Senate, was adopted by the Assembly and the Senate, and by President Donald Trump. However, as the large legislation comes into force next year, the Americans will begin to see a series of changes in the tax policy arising from the draft law.
The legislation adopted at the beginning of this month expands Trump’s 2017 tax cuts and contains additional provisions that affect deductions, overtime wages, philanthropy, Medicaid and more. Jon Fortt of CNBC, some of the provisions of the bill may have unwanted side effects.
University donations
University donations are an example of a major change in tax policy that does not attract as much attention as other provisions until the votes in the Congress.
The tax rate will remain the same for universities with smaller donations. However, for schools with donations between 750,000 and 2 million dollars, the rate will rise to 4%. This doubles for universities who have donated more than $ 2 million.
Schools with students who pay less than 3,000 students will be exempt from tax.
“Tax increase will affect some of the best research universities in the country,” Sharon Epperson said. “Experts say that higher tax will hit about 15 schools. In 2023, 56 university paid approximately $ 380 million under donation tax.”
EPPERSON is possible for universities to try to change their donation strategies to avoid tax hit, EPPERSON added potentially by offering more scholarships to reduce the number of students paying taxes to reach tax exemption status.
Charity
The bill also has consequences for philanthropy that can affect individual benevolent decisions.
According to CNBC’s, philanthropy recorded last year to $ 590 billion Robert Frank. New philanthropists aim to encourage daily Americans to give more – but they also have consequences for the beings who make up a large part of this record.
“Now to pay for it, Frank, the products, that is, the rich, gross income in the first half of the philanthropic deductions require the exemption.” He said. “So if you’re lucky enough to earn a million dollars a year, the first $ 5,000 given to the charity can not be deducted.”
Megabill also limits philanthropist cuts for those who won the highest tax tranche that can deterd the richest donors of America.
Federal open
. The Congress Budget Office estimated that the bill will add more of the provisions. 3 trillion dollars open.
However, the Republicans and the Trump Administration insist that the basic line of the total cost of the Draft should always assume that the extended tax deductions will always be expanded. They argue that the cost of extending deductions should not be included in the total cost of the GOP invoice.
However, unless tax cuts were expanded with a new invoice like this, they would end at the end of this year. According to CBO, especially all tax revenues that will not be collected by the federal government, especially all tax revenues that will not be collected by the federal government, because it adds more than 10 years of dollars to CBO for more than 10 years.
Experts say it should be a universal standard for tax reduction and deficiency projections.
Maya Macguineas, for the responsible sacrifice budget, “This is the irony and how uncomfortable this argument is, at the same time on this new tax bill, at the same time, all of them will expire and all of them will expire and they need to be completed, they think that they are permanent for a responsible budget, there is a series of tips and more work and other things.” He said.
Macguineas, “As a result, let’s say, if you are going to borrow $ 4 trillion, you should recognize when you create the tax bill or extend the tax bill, but you cannot change how you calculate at the beginning and extension time.”
For more information about how the expenditure invoice affects Americans for each expenditure, enter the CNBC’s special report.
