Tuesday, March 24, 2009

Obama on reduced charitable gift tax

I should start this post by saying that I am praying for my President. Without a doubt his task is one that requires divine guidance. That being said: In the live presidential news conference President Obama said that reducing the charitable giving tax would have virtually no negative effect on charitable giving bottom lines. Before you accept that as fact you need to consider this study by Indiana University. I can't bear the thought of how negatively this could affect churches. Many of them would likely cease to exist:

Obama Administration Considers Reducing Charitable Gift Tax Deductions

"The Obama Administration is considering reducing the deduction high income taxpayers can take for charitable gifts and increasing the top personal income tax rate.

The Center on Philanthropy at Indiana University recently looked at how givingwould have been affected in 2006 (the latest year for which itemized deduction data are available) if the Administration's proposals for charitable gift deduction rates and personal income tax rates for taxpayers with income above $250,000 had been in effect at that time. The Center estimates that the two changes combined would have resulted in a reduction of total itemized giving by the highest income households of 4.8 percent in 2006, or...

a drop of $3.87 billion in itemized contributions by those households. Total itemized giving by households in the highest income categories in 2006 was $81.26 billion."

To read more click HERE


Anonymous said...

I saw the news conference last night and what caused me to step back was when, he said basically those people should just give more or should be giving without thinking about getting a tax deduction. Is it a total disconnect or a subtle way to affect religious entities without looking like you are?

Chris Brown said...

Not sure what his motivation behind this idea is but I do know that it will most definitely have a major affect on non profits. To say it will have virtually no effect is misleading to say the least.