Tuesday, May 12, 2009
The Chronicle of Philanthropy reports that the Obama administration has reiterated its support for capping the tax breaks that wealthy individuals receive for itemized deductions, including charitable donations. According to the report, the White House made detailed budget documents available last week that included the controversial cap. The "Green Book" recently released by Treasury, more formally known as the General Explanations of the Administration's Fiscal Year 2010 Revenue Proposals, also includes this limit of 28% on the tax value of itemized deductions, including the charitable contribution deduction (see pages 87-88). Previous coverage of this issue includes Harvard Economist Martin Feldstein's take on this issue and a summary of much of the debate the administration's proposal initially generated.
An earlier Chronicle of Philanthropy article provided an overview of other items in the President's budget that may be of interest to nonprofits, including funding for programs such as the Corporation for National and Community Services, HUD Community Block Grants, the National Endowment for the Arts, and the National Endowment for the Humanities.