In Monday’s (4/8) Chronicle of Philanthropy, Doug Donovan writes, “President Obama is expected to renew his call to limit the charitable tax deduction when he releases his 2014 budget plan on Wednesday—a proposal that nonprofits have repeatedly helped defeat. ‘The President’s proposal, as you know, includes the provision that would cap deductions for wealthier Americans at 28 percent—a very common-sense proposition,’ White House spokesman Jay Carney said at an April 5 news briefing. … A coalition of charities helped head off the president’s most recent attempt when the White House and Congress reached a budget deal on January 2. … The White House estimates that the new limit would generate $321-billion in additional revenue through 2021, according to the Tax Policy Center. … But nonprofit advocates say the proposal could reduce donations by as much as $9-billion annually. … The Charitable Giving Coalition, which has led the fight against limits, has already mobilized to beat back the latest effort as well. ‘The charitable deduction is different than other itemized deductions in that it encourages individuals to give away a portion of their income to those in need,’ states a March 14 letter that the coalition sent to Sen. Patty Murray, the Washington Democrat who chairs the Senate Budget Committee. ‘It is not a tax cut for the wealthy.’ ”
Posted April 10, 2013
