Friday, March 6, 2009

Is There Trouble On The Horizon - Secretary Geithner Hints That Maybe The Administration Will Reconsider Limiting The Charitale Tax Deduction in the Proposed Budget

The Wall Street Journal reported yesterday, March 5, that:

President Barack Obama is meeting strong Democratic Party resistance to his proposal to reduce tax deductions enjoyed by upper-income Americans and could be forced to drop or modify the idea.

Mr. Obama in his budget blueprint last week proposed a cap on itemized deductions for mortgage interest and charitable donations to help pay for his health-care overhaul. The plan would cost wealthier taxpayers about $318 billion in new taxes over 10 years, according to government estimates.

But after objections from Democratic lawmakers, Treasury Secretary Timothy Geithner appeared to suggest at one point Wednesday that the administration was willing to consider dropping or modifying the proposal.

The article goes on to suggest that the strong opposition to President Obama's tax proposals might signal that the balance of the proposals might face stiff opposition even from his own party.  A commenter to this article on the Wall Street Journal website credited President Obama with revealing the hypocrisy in his own party (but in a positive way).  The commenter suggested that Democratic members of Congress had wealthy contributors, too, and were concerned how the proposals might impact future contributions.

For the full article, please  click here.

AMT

http://lawprofessors.typepad.com/nonprofit/2009/03/is-there-troubl.html

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