Will Obama's plan to trim charitable tax deductions hurt religious groups?
Religious groups may be spared general decline in giving
Apr 21, 2009
The White House’s proposed 2010 federal budget calls for reducing the deduction for charitable contributions for the nation’s wealthiest taxpayers. Some religious groups are asking how that will affect their bottom line. The answer: it on depends who you ask.
Here’s what it means in real terms for the 5 percent 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 President 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.