President Obama’s proposed 2010 federal budget contains a 7% cut in charitable tax deductions for the nation’s wealthiest taxpayers. Some religious groups are asking how that will affect their bottom line.
The answer: it depends who you ask.
Here’s what it means in real terms for the 5% of Americans whose household income exceeds $250,000 a year. Those families can currently save $350 in taxes for every $1,000 donated to charity; under Obama’s plan, that amount would drop to $280 per $1,000 donation.
“By doing this, you raise the cost of giving” said Roberton Williams, a senior fellow at The Tax Policy Center, a liberal Washington think tank.
[i]”By doing this, you raise the cost of giving” said Roberton Williams, a senior fellow at The Tax Policy Center, a liberal Washington think tank.[/i]
And raising the cost of giving would matter to the Obama-ites, why? So long as they “stick it to The Man,” what else matters?
It wouldn’t matter, in fact it’s a plus – then people will be more apt to look to government for help instead of private charities or churches.
And the politicions can garner more votes. Patrionage is a wonderful thing. You don’t want to waste it.
Those who already give out of Love of the Lord will continue to give. Those who don’t give anyway will use this as a further excuse for their not giving.