A few days ago philanthropy.com reported that the Obama administration is moving forward to limit the value of charitable deductions for wealthy taxpayers in the fiscal 2011 year budget. Specifically, this would limit the benefits of itemized deductions to 28% for couples earning $250,000 or more or individuals earning $200,000 or more. Clearly this impacts small business whose companies are set up as a sub chapter S where incomes passes through the business to the individual tax payer.
Obama attempted this earlier as a means for partially funding the health care proposals. The White House believes these new tax policies would raise more than $291-billion from 2011 to 2020. With the tax rates for wealthiest Americans increasing from 35% to 39.6% this will be a double whammy to dampen their enthusiasm for charitable donations. Non-profits are understandably extremely concerned since the economic downturn has already severely impacted both their operating budgets and projected gifts in art and money.
Americans have traditionally given more than any other nationality. (Note as individuals Americans give twice as much as the British who were second. As a country, 2006 figures indicate that the USA ranks 21st as a percentage of GNP in giving). There will be some big fights on capitol hill as non-profits maneuver for survival against a Congress and Administration try to fund their agenda. Regardless of your politics it appears that Obama will deliver on his campaign promise of change in your America.
1 comment:
Right on, John. I guess the democrats have forgotten the parable about strangling the goose that laid the golden egg.
Post a Comment