Monday, February 13, 2012
The Chronicle of Philanthropy reports that the President's recently released 2013 budget proposes limiting the itemized deduction for contributions to eligible charities to 28% for married couples filing jointly with combined incomes of $250,000 or greater, and for single taxpayers with incomes of $200,000 or more. The proposal reportedly helps reduce the budget deficit by $584 billion over 10 years. As previously blogged, this proposal has been considered recently by Congress, including as part of the 2012 budget.
The 2013 budget also contains the often-phrased "Buffett rule," whereby households with greater than $1 million in annual income would pay at least 30 percent of their income in federal income taxes. The Chronicle opines that this could "dampen" the amounts that wealthier Americans donate to charities annually. However, an earlier Chronicle article highlighted the President's "pledge" to restructure the Internal Revenue Code in a manner that would not "disadvantage individuals who make large charitable contributions."