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The Congressional Joint Select Committee on Deficit Reduction, the so-called Supercommittee, announced that it will fail to reach a bi-partisan deficit reduction deal by the established deadline. The Committee issued a statement on November 21, 2011.
The failure of the Supercommittee leaves many questions unanswered for the nation, in general. It also leaves many open questions where the nonprofit sector is concerned:
- Will Congress allow the Bush Tax Cuts to expire next year? How will that impact charitable giving?
- Will Congress tinker with the charitable giving tax deduction? Both Democrats and Republicans on the Supercommittee have expressed a willingness to reduce, in some way, the charitable giving tax deduction. So, what will Congress ultimately do and how will that impact giving?
- How will Congress’ failure to reduce the deficit impact the stock market and the overall economy? Today, the Dow fell 248.85 points (-2.11 percent) while the NASDAQ dropped 49.36 points (-1.92 percent). How will this ultimately impact philanthropy?
One thing is certain: When it comes to tax rates, tax deductions, the stock market, and the economy, uncertainty is likely to remain at least until the 2012 election. This will obviously create challenges for all Americans. However, it will continue to present unique challenges to everyone involved in the philanthropic planning process.
The Supercommittee has done the nation a massive, bi-partisan disservice by failing to do its job. If there were a shred of honor left in Washington, DC, every member of the Supercommittee would resign. The Supercommittee is not looking very “super” at the moment.
That’s what Michael Rosen says… What do you say?