Charities Oppose Tax Deduction Limits On Donations
Charities began fighting back against limits on tax deductions for donations in 2011. Some of America’s largest charitable organizations opposed President Barack Obama’s plan to reportedly limit the amount of tax breaks which can be taken in order to pay for a jobs bill, according to the Wall Street Journal.
Staunch opposition to the idea and concerns that tax deduction limitations would curtail giving reportedly convinced Democrats to look elsewhere for jobs bill funding. The same plan is allegedly once again being shopped around Washington, prompting vocal discord from charities once again. Non-profit groups are supposedly worried that after being successful at keeping tax deduction limits at bay for several years, this round could bring different results.
Cancer Action Network President Chris Hansen had this to say on the matter:
“What we’re up against now is a mega-fiscal issue. You worry that they will miss some important facts as they desperately try to come up with something that they can compromise on.”
The action network is the advocacy arm of the American Cancer Society. Taxpayers in the United States paid approximately $40 billion less in taxes during 2012 due to the available charitable deductions, according to the Congress’ Joint Committee on Taxation statistics. A coalition of non-profit organizations cited studies that President Obama’s plan would cause taxpayers to give between $1.7 to $7 billion less per year to charities.
The Wall Street Journal notes that no specific plan to limit deductions has been presented but proposals that focus on capping overall deductions are being floated around. In previous years the White House has reportedly proposed limiting deductions to no more than 28 percent of the income of families making over $250,000 per year.