AFP Joins Coalition to Urge Obama Not to Limit Charitable Tax Deduction
(Feb. 16, 2010) President Obama has included in the FY2011 budget a proposal to limit the value of itemized deductions for charitable contributions. AFP and several other organizations have co-signed a letter urging President Obama not to set limits on important tax incentives for giving.
Similar to the proposal set forth by the president last year to help fund healthcare reforms, this proposal would limit the federal tax deduction at 28 percent for those individuals who earn more than $200,000 (and those couples and families who earn more than $250,000). Currently, these individuals and families may claim up to a 35 percent deduction. This tax policy change would effectively devalue charitable gifts made by the very people who are in a position to make substantial donations at a time when they are sorely needed.
You can find references to the proposal in the official White House budget document on page 40 and in Table S-8 (page 165). The coalition's letter to the Obama Administration can be found in the Attachments section below.