What Will Happen to Charitable Giving?

7 04 2009

Obama isn’t only interested in raising taxes; he wants to reduce tax deductibility to charitable donations at the same time.

Currently, the highest personal income tax bracket is 35% and those in that bracket can claim35% of their charitable giving.

Under Obama’s plan, he will raise the highest tax bracket to 39% but reduce what they can claim for charitable giving to 28%. Many fear this will reduce charitable giving, as this group of tax payers will be paying more to the government while getting less tax incentive to give to charity.  Heritage reports that Indiana University ran the numbers from 2006 charitable giving and estimated this will reduce charitable giving by 4 billion. That is the amount of the annual budgets of the American Heart Association, American Cancer Society, World Vision, St. Jude’s and Habitat for Humanity – combined.

REPEATABLE: Obama believes that government can better decide who gets your money; rather than have tax payers decide themselves through their own charitable giving.

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