CNA Staff, Mar 6, 2025 / 15:35 pm (CNA).
Maryland’s Catholic bishops recently expressed concern that a proposed change to the state’s tax code, specifically the elimination of itemized deductions, could reduce charitable giving in the state.
As part of a broad tax reform agenda pushed by Democratic Gov. Wes Moore, the bill in the Maryland Legislature would double the standard deduction — the flat amount that tax filers can claim without having to list and prove all their deductions — while eliminating itemized deductions. The latter are often used by taxpayers to claim charitable expenses.
A 2023 state report cited by the Baltimore Sun showed that roughly 20% of Maryland taxpayers made use of itemized deductions. Moore’s office has claimed that only wealthy households use them and that middle- and low-income taxpayers largely won’t be affected.
The Maryland Catholic Conference (MCC), which represents the state’s bishops, said in a Feb. 28 testimony to the state Legislature’s Budget and Taxation Committee that the Catholic Church’s presence in Maryland, which includes parishes, schools, hospitals, and numerous charities, “combine to form our state’s second-largest social service provider network, behind only our state government.”
The conference warned that the proposed change could have “unintended consequences” on charitable giving in the state, because eliminating itemized deductions removes the tax incentive for charitable donations.
Research from the Tax Policy Center suggests that when a similar policy was enacted at the federal level in 2018, charitable giving declined by billions of dollars.
“Charitable giving is not merely a financial transaction, it is an expression of our shared moral responsibility to care for the poor, the vulnerable, and those in need,” the Maryland Catholic Conference said in its statement.
“Catholic social teaching calls us to solidarity and the preferential option for the poor, recognizing that human dignity is upheld when we work together to support those who are struggling,” the conference said.
“Faith-based and nonprofit organizations play a vital role in meeting the needs of our communities, offering food, shelter, education, and support to countless individuals and families.”
While the intention of increasing the standard deduction may be to provide financial relief to Maryland taxpayers, “it should not come at the expense of charitable giving and the ability of civil society to care for those in need,” the conference continued.
“Catholic teaching affirms the principle of subsidiarity, which holds that needs should be met at the most local level possible. Charitable organizations and religious institutions are often best positioned to provide direct assistance efficiently and compassionately,” the group said.
“Removing this incentive will weaken the financial foundation of these organizations and ultimately shift the burden to government programs, which are already strained.”
The Maryland bills are currently being considered by committees in the state House and Senate.
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