At least one part of negotiations over the fiscal cliff appears misguided: Eliminating or capping the tax deduction for charitable contributions isn’t as big a deal as some fear.
Republicans have proposed raising $800 billion over 10 years by capping tax deductions for the wealthy, including highly popular breaks for mortgage interest, state and local taxes, and charitable giving. Democrats won’t hear of capping the tax deduction for charitable giving, which they say accounts for much or even most of the additional revenue.
“If you eliminated charitable deductions, that means every hospital and university and not-for-profit agency across the country would suddenly find themselves on the verge of collapse,” President Obama said on Bloomberg TV, as reported in The New York Times. “So that’s not a realistic option.”
Americans give about $300 billion a year. How much of…
View original post 625 more words