Tax Break for Donations at Risk?

December 5, 2010 at 1:54 PM

The New York Times reports on the arguments for and against changing – or even eliminating – the charity deduction as part of reforms to lower the federal deficit.

What began as a proposal by the Obama administration in 2009 to reduce the deduction has become a wide-ranging discussion of what was once considered a sacred cow…’The administration’s proposal went nowhere, but Pandora’s box was cracked open then,’ said Diana Aviv, president of the Independent Sector, a trade group for nonprofits.

Nonprofits are concerned:

[Charities] said the proposed changes came at a time of sustained and severe declines in donations because of the recession and cuts in government contracts for nonprofits. The charities also noted an increased demand for services.

The more you tax something, the less you get of it.

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Entry filed under: Economic Issues.

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