Philanthropic organization criticizes Obama's tax plans
April 23, 2009 by Personal Liberty News Desk
The Association for Healthcare Philanthropy has criticized the limits on tax deductions for charitable donations in the Obama administration’s budget.
It says the budget puts forward a scheme that would devalue charitable gifts by reducing the federal tax deductions from 35 percent to 28 percent for those who earn more than $250,000.
"In these challenging economic times, charities and nonprofits already are finding it difficult to fulfill their altruistic missions because of reduced donations and resources," the organization said in a statement.
It also suggested the federal government should promote philanthropy not make it more difficult.
Meanwhile, Americans for Tax Reform has identified another obstacle to the charitable sector in the form of itemized deduction phase-out in 2011 for married couples making $250,000 and single people making $200,000.
In the organization’s view, this limitation will make wealthy people give less to charity.
It estimates that every 1 percent decline in household charitable giving means nearly $2 billion less.
"That’s $2 billion that’s not available for churches, shelters and other worthy causes," it says.