Obama's Plan to Reduce Charitable Deductions for the Wealthy Draws Criticism

Chronicle of Philanthropy ^ | Feb 27,2009 | Suzanne Perry

[SeekAndFind]

Some charities and nonprofit experts are worried that President Obama’s proposal to impose new limits on charitable tax deductions for wealthy people would dampen giving at a time when charities are under severe strain because of the recession.

“During the current economic downturn, which has forced nonprofits to do more with less, any proposal which would result in a decrease in private giving will be a disaster for America’s charities, and for those who depend upon them,” said United Jewish Communities, an umbrella group for Jewish social-service charities.

Mr. Obama proposed the new caps on Thursday as a way to finance changes in the country’s health-care system.

In a document outlining his 2010 budget plans, President Obama proposed limiting the value of the tax break for itemized deductions, including donations to charity, to 28 percent for families making more than $250,000. In other words, taxpayers would save 28 cents on their federal income taxes for each dollar donated.

That would reduce by as much as 20 percent the amount wealthy taxpayers could get in tax breaks. Under the current system, taxpayers who are in the 33 percent or 35 percent tax brackets use that rate to claim deductions.

[Dr.Deth]

The true reasoning is that they want these people to turn instead to Uncle Sugar Government and become thralls to the Democrats. They are truly despicable people.

[SEAL76]

You are exactly right. Obama wants to see the end of private charities, religious or secular. He wants as many people as possible dependent on the US Government as possible. His budget and economic STIMPAC will add to the ranks of the unemployed. Socialism is his goal. It has worked so well in the past. Why not try again. Red China, North Korea, USSR, NAZI Germany, Fascist Italy, and so many European countries. While these may seem extreme it is only a matter of time before we get so used to government running our lives that we will learn to put up with anything.