The Obama administration firmly believes that one of the contributors to our national debt and budget deficits is the fact that the wealthy give to charity. His jobs bill makes this clear by proposing a cap on the deduction high income earners (the one’s most likely to take advantage of the deduction as well as provide the largest contributions) can claim when engaging in philanthropy. Currently, anyone earning over $250k per year is able to deduct up to 35 cents for every $1 they contribute to charity for up to 50% of their income. Under President Obama’s proposal, that would be dropped to 28 cents per $1.
According to the Center for Philanthropy at Indiana University, the impact on overall charitable giving would be “relatively small” even had the administration administered these caps in 2009 & 2010.Continue reading on www.redstate.com