December 17, 2017 - U. S. Senate Tax Reform Bill Passed (continued)

Earlier this month Bishop Frank Dewane of Venice, Florida, chair of the U.S. Conference of Catholic Bishops’ (USCCB) Committee on Domestic Justice and Human Development, urged Congress to fix tax policies that were fundamentally flawed as the House of Representatives and Senate tried to reach agreement on a final bill.  In November he had written to them and had proposed six moral principles to assist them in their discussion.  In my column last week I covered the first three of these principles.  In today’s column I want to talk about the last three principles.
 
4. Adequate revenue for the sake of the common good.  Resources are required for society to defend and promote the common good. The USCCB has affirmed that “the tax system should raise adequate revenues to pay for the needs of society, especially to meet the basic needs of the poor” (Economic Justice for All (“EJA”), 202).  In carrying out its responsibilities, “[g]overnments may levy the taxes necessary to meet these responsibilities, and citizens have a moral obligation to pay those taxes” (EJA, 123).
 
5. Avoiding cuts to poverty programs to finance tax reform.  The loss of revenue created by tax cuts should not be made up by cuts to programs that serve those most in need.  Recent proposals by leaders in Washington indicate an openness to steep cuts to the social safety net and discretionary programs that serve those in poverty.  At the same time, Congress is seriously considering increases in military spending.  Legislators must avoid creating a situation in which cuts to programs for the poor will be made to seem inevitable and necessary, whether in the short or longer term, in order to make tax cuts possible.
 
6. Incentivize charitable giving and development.  Charitable giving is strongly incentivized in the present tax code, and the “United Framework” states that the charitable giving deduction will be preserved.  Perhaps unintentionally, though, the plan risks crippling charitable giving.  Academic research predicts a multi-billion dollar drop in charitable giving if the standard deduction were doubled.  The elimination of the estate tax would further reduce incentives to give.  Tax credits to encourage efforts like the development of affordable housing also appear at risk.  Removing the incentives to give to charities, while also cutting anti-poverty programs would doubly burden the most vulnerable members of our communities.  Proposals to remedy some of these challenges have been offered and should be seriously considered.
 
Bishop Dewane recognizes that national tax policy is complex and its effects are far-reaching.  He urges Congress to recognize the critical obligation of creating a just framework aimed at economic security of all people, especially the least of these.  To learn more about the seven themes of Catholic Social Teaching, please use the following link:  https://tinyurl.com/3w69bg6.
 
Until next week,
Fr. John Dillon