In Friday’s (11/30) Wall Street Journal, Naftali Bendavid reports, “In 2011, the nation’s biggest charities swung into action to oppose President Barack Obama using limits on tax deductions to help pay for a jobs bill. Warning that such a move would hurt charitable giving, they prevailed, and Democrats looked elsewhere. A year later, deductions are again in the cross hairs as Washington tries to avert tax increases and spending cuts. After years of successfully fending off such efforts, nonprofits worry this time could be different. … The White House in the past has proposed limiting deductions to no more than 28% of income for families making $250,000 or more. Republicans including former presidential nominee Mitt Romney have suggested limiting deductions to a specific dollar amount. Others have suggested a ‘haircut’ option, letting taxpayers claim, for example, 80% of their current deductions. Nonprofit leaders say that if deductions are limited, taxpayers will cut back their giving. Diana Aviv, president of Independent Sector, a coalition of nonprofits, cited studies suggesting Mr. Obama’s plan would lead to $1.7 billion to $7 billion less a year in charity giving. The impact of a dollar cap on deductions, she said, would be even greater.”
Posted November 30, 2012
