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Charitable Deductions Under Attack

4-16-13 Posted by Admin in Blog, Poverty 0 Comments
charitable-donations

The “charity” deduction was created in 1917 to preserve America’s centuries-old tradition of philanthropy. It is the only section of the U.S. Tax Code that “rewards” a taxpayer for giving their resources away. Tax benefits for charitable contributions and tax-exempt organizations are approximately $100 billion annually.

Unfortunately, some political leaders see the charitable deduction as $40 billion in “lost federal revenue.” President Obama, former presidential candidate Mitt Romney, and the Bowles-Simpson Commission have proposed modifications that would decrease private giving.

Modifying or doing away with the charity deduction will disproportionately harm nonprofits that rely heavily on private giving. Even a 28% cap on charitable deductions, as some including President Obama have proposed, will lower total giving by $9.4 billion annually. Most donors won’t stop giving, but they will likely give smaller amounts and/or less frequently.

Contact Congress and tell them to protect charitable deductions.

Recent Articles and Blog posts:

The End of Charity?

by Richard A. Epstein (Peter and Kirsten Bedford Senior Fellow and member of the Property Rights, Freedom, and Prosperity Task Force at the Hoover Institution)

“The president’s redistributive effort to limit charitable tax deductions will hurt the poor—and everyone else.”

Messing With Kenya

By Stephen Phelan

Just when faithful Catholics thought they’d heard the last of the troubled Patrick Kennedy, we find that he had one more curious public spectacle up his sleeve. As we have come to expect from the lame-duck congressman from Rhode Island, the occasion is one last attempt to make himself relevant to his family’s party by opposing pro-life Christians.

Kennedy is joining the chorus of supposedly “objective” Democrats who are traveling to Kenya and weighing in on the upcoming congressional referendum. Like Vice President Biden and a handful of other Democrat congressmen, Kennedy doesn’t see a problem with telling Kenyans how Washington thinks they should vote. But Kennedy has taken the rhetoric up a notch in both tone and absurdity, threatening to use the Congressional Oversight Committee (COC) to expose Western pro-life organizations that finance the opposition to the new pro-abortion constitution.

This threat is just crazy for several reasons. First, the efforts he is threatening to expose are in no way illegal. Human rights organizations on a daily basis do exactly what Kennedy apparently finds so nefarious – working with Kenyans to keep their country the way they want it – abortion-free. Along with the majority of Kenyans who are pro-life, these groups are right to be concerned by the proposed constitution, which essentially opens the door for a complete reversal of Kenya’s prohibitions against abortion. (more…)