For the fourth year in a row, President Obama is proposing lower tax deductions for the wealthy on donations to churches and other nonprofit organizations. And for the fourth year in a row, nonprofit groups say the change would lead to a dramatic drop in charitable giving.
The reduction, included in Obama’s 2013 budget proposal, rankled the Union of Orthodox Jewish Congregations of America.
“We were hoping this would not come up again this year. We asked that they not renew it, but unfortunately the request was not taken,” said Nathan Diament, the group’s Washington director. “It’s a real concern.”
What a better way to make more people dependent on the federal government for largess. A way to garner votes and destroy the United States as a constitutional federal republic.
A comprehensive revision of the tax structure is needed and this will be a rubric that fades. Sorry.
“Obama has argued in the past that it is not fair that the wealthy receive a larger tax break for the same donations to charity when a middle class taxpayer can only claim a deduction of 15 percent.” But of course Obama sees no unfairness that the “wealthy” are taxed at a higher rate than 15%.
“Obama has argued in the past that it is not fair that the wealthy receive a larger tax break for the same donations to charity when a middle class taxpayer can only claim a deduction of 15 percent.â€
All the more reason to encourage them to give generously. They can more readily afford it than the middle class, who are spending a greater portion of their income on food, clothing, gasoline and other non-deductible items.
I agree that it would be a big mistake for the charitable deductions to be limited. If the money is given away to a recognized charity, it should not be taxed. What I find strange is that Obama doesn’t seem to realize that among the institutions that will be hurt most are the ones that the elite usually love: Museums, symphonies, art centers etc.
Here’s a thought…tax the bejeepers out of any donation made to a Super-PAC or to politicians in any way, shape, or form. Call it a luxury tax if you like.
Testing the comment system.
The two most pressing taxation issues are complexity and “loopholes.” Most taxpayers would, I believe, be more willing to pay taxes were it not for the feeling that “everybody else” is using loopholes and deductions, some of which apply only to a handful of the politically-favored.
In the case of personal income tax I would eliminate nearly all deductions. No more Schedule A. Period. Provide a standard exemption/deduction of $12,000 per adult and $6,000 per child under age 18. Supplementary exemptions could be provided for blindness and such, as now.
From there on, income up to $100,000 is taxed at 10 percent. $100K to a Million at 15 percent. One Million to ten Million at 20 percent, and everything over Ten Million at 25%. All income, regardless of source would be taxed at the same rates.
My personal choice would be to recognize Social Security and Medicare as the welfare programs they are and eliminate the OASDI and Medicare taxes per se. If that were done I would add 5 percent to the tax rates above, keeping the 10 percent rate for income under $50,000. Means-test Social Security and Medicare, and for goodness sake stop forcing people to take Medicare if they don’t want it.
I disagree. If the deduction was gone, it will not change my tithe to the church or to my favorite charities. Frankly some of the charities that we spend the most on are not “official, government sanctioned charities.” We just do what we think is right to help our neighbors, friends and some others we care about, and we don’t take a tax deduction for it.
I think it would be a good thing for the government to drop the tax break. It mostly subsidizes big ticket expenses like the fancy sports center with your name on it for the millionaire. Folks who care about the church would still tithe. Folks who care about the poor would still give. Why should we subsidize the donations of millionaires to art museums? If they like art they will pay for it, if they don’t, why should the government subsidize their charities and preferences? What getting rid of the deduction will do, is that it will stop the fake “nonprofit” “center to help children in need” or “center to help families” that is mostly a front for a single person business.
Bart said “The two most pressing taxation issues are complexity and “loopholes.†Most taxpayers would, I believe, be more willing to pay taxes were it not for the feeling that “everybody else†is using loopholes and deductions, some of which apply only to a handful of the politically-favored.”
I agree. However I doubt we could run the government (AS PRESENTLY CONSTITUTED) on your schedule unless it included income from capital gains. (And I think it should) But I agree, eliminate all deductions including the mortgage interest and college deductions which have brought us gigantic bubbles. Why should renters and high school drop outs subsidize folks who live in mansions and send their kids to college. And definately means test medicare, and social security. They are and always have been welfare which goes to more wealthy folk than poor folk.
In fairness very few of these so called “loopholes” are true loopholes. They were deliberately put in the tax code to induce some sort of behavior. The become a “loophole” when someone does not like them.
Well, in that case, I don’t like any of them…..and every one of them should be closed…..no exceptions.
But then, I’m just whistling in the wind, because that won’t happen, will it?
Hey, #10 !clue … did I not say “All income, regardless of source would be taxed at the same rates.” Last I knew that included capital gains.
The revenue problem you mention would be eliminated by a simple (not easy) Constitutional amendment:
[i]Except in times of declared war the federal budget of these United States shall remain in balance at a level not to exceed 18 percent of the previous three years’ average Gross Domestic Product. An additional three percent may be collected for the unique purpose of retiring existing federal debt.[/i]
It’s time the political class had to struggle with priorities, just like the rest of us. After all, we’re paying all the bills, including theirs.