Posts tagged ‘US Senate Budget Committee’

March 14, 2013

Special Report: Charitable Giving Deduction in the Crosshairs, Again

The US Senate Budget Committee has just released its FY 2014 Budget Resolution. On pages 65 and 66, the Democratic-controlled Committee asserts that the wealthy are unfairly benefiting from “tax expenditures.”

The Budget Committee calls on the Senate Finance Committee to reduce the deficit by limiting or reforming “unfair” tax breaks for the wealthy. The Committee specifically mentions itemized deductions with various options listed for limiting them (i.e.: a percentage cap, hard dollar cap, etc.). The charitable deduction is not exempted from these various proposals.

The Obama Administration has previously floated a similar proposal. You can read my analysis of that in my post: “Obama Plan Could Cost Nonprofit Sector $5.6 Billion a Year.” In short, limiting or eliminating the tax deduction for charitable giving is expected to have a significant, negative impact on giving.

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