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SALT LAKE CITY -- Elder Dallin H. Oaks testified before a senate committee Tuesday morning about the importance of the charitable deduction, not in a religious or political sense but in a greater context.
Elder Oaks, a member of the Quorum of the Twelve of The Church of Jesus Christ of Latter-day Saints, told the U.S. Senate Finance Committee that charities would lose billions of dollars if a cap for private sector donations is put in place.
"The charitable deduction is vital to the private sector that is unique to America," he testified.
The tax code currently encourages charitable contributions. However, Congress is under pressure to cut costs, and several proposals it is considering could reduce or do away with tax deductions for donations to charity.
Sen. Orrin Hatch, R-Utah, invited Elder Oaks to testify at the hearing due to his position within the LDS church and the church's "long and rich history of giving to those in need throughout America and the world."
- Frank Sammartino, Congressional Budget Office, assistant director for tax analysis
- Dr. Eugene Steuerle, noted economist
- Brian A. Gallagher, president and CEO of United Way Worldwide
- Roger Colinvaux, associate professor at The Catholic University of America, Columbus School of Law
Hatch supports charitable deductions since they encourage non-governmental ways of providing help to those in need. Hatch told KSL Newsradio that Elder Oaks' and others' testimony was well received by committee members.
The Deseret News reports Elder Oaks was accompanied by representatives of the Catholic Church and the Southern Baptist Theological Seminary, the CEO of United Way, along with other national experts.
Elder Oaks testified that the charitable tax deduction provides much of the funding for many private associations, religious and charitable, which are responsible for tens of millions of jobs and numerous services that benefit citizens at every level.
"I speak of private educational institutions, hospitals, social welfare agencies and countless other organizations that attend to the youth, elderly, the poor and citizens generally," he said.
He pointed out that reducing the tax write-off incentive could negatively impact them.
"The financial well-being of this private sector is dependent upon private contributions that qualify for the charitable deduction," Elder Oaks said. "And the impact these private institutions have on those they serve is magnified by the millions of volunteers motivated by the ideals they pursue."
He also said, "The private non-profit, non-government sector has always been an important counterweight to the powers and potentially repressive influence of governments at the local, state and national level. The private sector is essential to preserving pluralism and freedom in our nation. Don't reduce the charitable donation."
To view Elder Oaks' testimony, click here. To view Sen. Hatch's opening statement, click here.
