In Thursday’s (2/27) Chronicle of Philanthropy, Alex Daniels reports, “Nonprofit advocates slammed a plan offered Wednesday by the chief tax architect of the House that would sharply limit charity tax breaks for people at all income levels. Under the plan, people would be allowed to deduct only the amount above 2 percent of income they give to charity.… The charitable deduction was among many tax breaks that would be limited under the plan, drafted by Rep. Dave Camp, chairman of the House Ways and Means Committee.… Nonetheless, nonprofits are already rallying to fight the idea. Aside from the limits on deductions, they are unhappy that the number of people who would be eligible to take any charitable deduction at all would drop sharply.… That plan, combined with the 2-percent threshold, would erode the tax incentive for middle-income Americans to give to charity, said Brian Gallagher, chief executive officer of United Way Worldwide.… Political observers say they doubt Mr. Camp’s plan will get very far this year because of the partisan bickering likely to occur in the run-up to the November mid-term elections. Still, tax plans as comprehensive as his could be a starting point for the conversation in 2015.”
Posted February 28, 2014
