Politico reports that the Republican tax cut for the wealthy contains a little stinker for many people in Trump’s base — a new tax on churches and other nonprofit institutions. Democrats naturally are making hay from this against the likes of Republican Rep. French Hill, whose current TV advertising is all tax cuts all the time.
Republicans have quietly imposed a new tax on churches, synagogues and other nonprofits, a little-noticed and surprising change that could cost some groups tens of thousands of dollars.
Their recent tax-code rewrite requires churches, hospitals, colleges, orchestras and other historically tax-exempt organizations to begin paying a 21 percent tax on some types of fringe benefits they provide their employees.
That could force thousands of groups that have long had little contact with the IRS to suddenly begin filing returns and paying taxes for the first time.
The tax is on fringe benefits, such as paid parking and transportation and other perks. It can add up.
The Democratic Congressional Campaign Committee takes note of the new burden on churches against the backdrop of windfall tax cuts for millionaires and billionaires.
“Arkansans knew Rep. French Hill voted for a tax scam that gave massive tax breaks to corporations and billionaires, but now they are learning that French Hill raised taxes on churches to fund it,” said DCCC spokesperson Cole Leiter. “Amongst many other victims of the tax bill, Hill now also has to answer for this church tax and the burden it places on religious organizations and non-profits doing important work in communities across this district.”