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Will Charitable Deductions Still Be Included in GOP Tax Reform?

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Debate is underway on what House Republicans call the largest tax overhaul since the Reagan revolution.

House Ways and Means Chair Rep. Kevin Brady said, "This is a complete redesign of the code so that we can simplify it so much nine out of 10 Americans can file using a postcard file system."  

House Speaker Paul Ryan calls the bill a pro-growth, pro-family plan.

"With this plan the typical family of four will save $1182 a year on their taxes," Ryan said.

And President Trump praised the bill, which is called the Tax Cuts and Job Act.

"I really believe we'll have it done before Christmas, I consider that to be one of the great Christmas presents. And not just the reform, and not just the tax cuts, but we will be creating jobs like you have rarely seen," Trumps said.

Here are some top highlights of the plan:

* expands standard deduction to $12,000 for individuals & $24,000 for couples;
* increases child tax credit from $1,000 to $1,600 per child;
* cuts corporate tax rate from 35% to 25%

Republicans say the goal of that corporate tax cut is strengthening the economy, and adding more and better jobs to the U.S.

"We've got to modernize our tax code so that we can be competitive again, so that we can keep jobs in this country, so that we can keep businesses in this country," Ryan said.

The plan simplifies the system, setting four individual tax brackets at 12, 25, and 35 percent, keeping the 39.6 percent rate intact for the highest earners.

What About Charitable Contributions?

Republican Rep. Mark Walker, R-N.C, tells CBN News his initial reactions to the bill are very positive, but he does have a few concerns he'd like to see addressed, like adding a provision for some people to itemize their charitable contributions.

"We've been pushing for what we call the universal charitable giving act, that allows people making less than $200,000 who don't itemize to continue to get deductions for charitable giving. As a former pastor that's very important to me for people who give to their local ministries, local churches, local shelters," Walker said.

Then There's Also the Johnson Amendment

The bill also touches on a repeal of the Johnson Amendment which forbids 501(c)(3) non-profit organizations from supporting or opposing political candidates.

But the bill's language is ambiguous, and only protects sermons given in churches, and doesn't provide any protections for other religious organizations.

Still, like other parts of the plan, the language on the Johnson Amendment will be negotiated in the days ahead.

"I think over the next couple of weeks that's going to be one of the battles that's fought in the trenches," Walker said.

CBN News spoke with several Republicans who said it's a step in the right direction, and they hope by the end of the process to include a more clear repeal.  You can find much more about that here.

Chairman Kevin Brady tells us he wants to protect faith leaders from the government, not the other way around. He also doesn't want the IRS looming over churches for expressing their religious liberty.

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About The Author

Abigail
Robertson

Abigail Robertson serves as the White House Correspondent for CBN News, where she has worked since 2015. As a reporter, Abigail covers stories from a Christian perspective on American politics and the news of the day. Before her role at the White House, Abigail covered Capitol Hill, where she interviewed notable lawmakers such as Senate Minority Leader Mitch McConnell and former Speaker of the House Paul Ryan. During her time on the Hill, Abigail loved highlighting how God is moving in the House and Senate by covering different ministries on Capitol Hill and sharing lawmakers’ testimonies and