Trump, Tax Reform, and Mormons

On Wednesday, Donald Trump released his tax reform plan.

Scratch that: he released a one-page outline detailing highlights of what he wants his tax reform plan to look like. But even with its limited details, as my friend and colleague David Herzig points out, it is worth taking seriously. Presidents have traditionally had some power to shape tax reform according to their priorities, and at the very least, Trump’s Wednesday memo provides insight into his tax preferences.

And, because this blog focuses on Mormonism, here’s a great place to ask this question: how will his tax priorities affect U.S. Mormons? [Read more…]

Trump’s Tax Proposals and Mormons

It occurred to me this morning that Trump’s tax plan, if it passed in its current form, would impact many middle- (and some high-) income U.S. Mormons.[fn1] I mean, it would affect U.S. taxpayers in general, but it would have a particular effect on the deductibility of tithing.

The church cares about deductibility. In 2011, Elder Oaks gave testimony to the Senate Finance Committee that the charitable deduction is vital to the nation’s welfare.

And why might that be? Basically, because it reduces the cost of charitable giving, at least for taxpayers who itemize their deductions (more on that in a minute). For example, imagine I’m in the 25-percent tax bracket and I itemize. If I write a tithing check for $1,000, I’ve made a $1,000 charitable donation, and the church has an additional $1,000. But the after-tax cost to me of that donation was $750. [Read more…]