January 2018
Tax Cuts & Jobs Act to affect charitable giving The Tax Cuts and Jobs Act recently passed by Congress may decrease charitable giving across the U.S. by up to $10 billion per year and increase long-term pressure to cut federal nutrition programs such as SNAP. This two-pronged effect could put significant pressure on the food insecure population in southwest Missouri due to a potential loss in private funding for food assistance as well as government funding for nutrition programs. The decrease in charitable giving will be caused by the increased standard deduction for taxpayers in combination with the elimination of a number of itemized deductions. Due to the higher standard deduction, many taxpayers will not itemize their tax return and therefore not be eligible for a charitable tax deduction. The Joint Committee on Taxation has concluded that this would result in 30 million fewer taxpayers claiming a charitable deduction each year and that the amount claimed would decline by nearly $95 billion. These changes will significantly reduce the number of individuals who will donate to charitable programs, directly impacting Ozarks Food Harvest’s and our agencies ability to assist southwest Missouri and the more than 261,000 unduplicated individuals served by our network. The second concern is the increased pressure to cut federal nutrition programs to pay for the increase in the federal deficit. According to the Center on Budget and Policy
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POTENTIAL CHANGES TO THE FEDERAL NUTRITION PROGRAMS COULD BRING CHALLENGES TO OUR MISSION OF SERVING OUR HUNGRY NEIGHBORS.
Priorities, this legislation would increase the federal deficit by $1.5 trillion over ten years, which will result in disproportionate and increased pressure to cut federal nutrition programs. With previous proposals, in regards to the national budget, federal nutrition programs have consistently been an item legislators point to as needing to be cut in order to balance the budget. Between 2009 and 2012, the SNAP program in Missouri kept 221,000 people out of poverty including 109,000 children. With one in eight Missouri citizens accessing SNAP, the federal government will be taking away from a program that allows many people to feed their families while they work to get back on their feet.
Sen. Blunt visits Boys & Girls Club Inclement weather policy reminder SNAP critical to address hunger History of TEFAP
Ozarks Food Harvest has repeatedly stressed that even as the largest private response to hunger in southwest Missouri, we cannot make up for the gap in services that will result from cutting funding for nutrition programs. The potential loss of charitable donations will make the task of ensuring no Missourian goes hungry more difficult than before for both our organization and the agencies we serve. With potential changes coming to federal nutrition programs this year, it’s important for agencies to be aware of how these changes may affect their organizations and how we will continue to work together to solve the issue of food insecurity in southwest Missouri.