In Monday’s (9/12) Chronicle of Philanthropy, Lisa Chiu reports, “President Obama’s proposed $447-billion jobs bill would be financed mainly by limiting the percentage of income wealthy donors could write off, including tax breaks for charitable gifts. Mr. Obama, who today released the details of the plan he outlined to Congress last week, suggested limiting write-offs for itemized deductions to 28 percent … The nation’s most affluent people are currently allowed to write off 35 cents of every $1 they spend on charitable giving, housing, medical expenses, and other deductible items. In effect, Mr. Obama’s plan means that a donation of $100,000 would save a donor $28,000 in taxes, $7,000 less than he or she would save today. The plan, which would take effect in 2013, would apply to married couples with an adjusted gross income of at least $250,000 ($200,000 for individuals) and would provide roughly $400-billion for the federal government over 10 years, the White House said. … The president, who has proposed similar changes to the charitable deduction several times throughout his presidency, has faced stiff opposition from nonprofit leaders. They say that limiting the value of the tax break would cause wealthy people to reduce their giving. Today’s announcement quickly drew a similar outcry among nonprofit leaders, many of whom said the idea would force job cuts at charities just as the president is seeking to increase employment.”
Posted September 14, 2011
