Photo | Jonathan Ernst/Reuters
US President Donald J. Trump has repealed a 2017 Republican bill, cutting taxes for churches as they head into 2020.
According to Charisma News, the 73-year-old repealed a so-called “parking lot tax” that would have required houses of worship and other nonprofits to pay a 21% tax on employee benefits such as parking spaces and transit subsidies.
The repeal, Charisma News Reported, was part of House and Senate appropriations bills, passed by the two chambers Dec. 17 and Dec. 19, respectively. Trump signed the bills December 20, 2019.
“Houses of worship and charitable organizations provide invaluable spiritual care, social services, and support in every community in our country,” the chairmen of two U.S. bishops’ committees told local media in a Dec. 20 statement. “Especially during this time of year, we remember the ongoing good work happening through these organizations. To impose a new tax on these entities was wrong in the first place.”
“We applaud Congress for amending the Internal Revenue Code to eliminate this burdensome tax,” they said.
“By requiring nonprofits and houses of worship to pay taxes on parking and transit benefits provided for their employees, Section 512(a)(7) entangles the IRS with houses of worship and drains the charitable sector of vital resources. We welcome its repeal,” they added.
Mr Russell Moore, president of the Ethics & Religious Liberty Commission was quoted as saying this repeal comes as a welcome relief for millions of Americans.
“In these contentious days, finding a bipartisan area of agreement in Congress is worth celebrating,” he noted.
