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A spokesman for The Tax Foundation in Washington says he admires President Obama's gall in taking on the long-established deductions in the tax code for those who give charitable organizations donations.Obama talked about the issue during his Tuesday night news conference on nationwide television, suggesting that those in the upper income tax brackets no longer will be able to deduct all they give to charities.Spokesman Bill Ahearn was interviewed by Greg Corombos of RadioAmerica.org. He said, "You may remember during the campaign Obama often spoke that some upper income people did not deserve all of the tax breaks they were enjoying, sometimes he used $200,000 as the break point for deserving your tax breaks, more often $250,000."This time we're back at the $200,000 level, for right now for a couple who earns more than $200,000 in taxable income, they will break into the 33 percent bracket, which Obama plans to change into the 36 percent bracket. When they make a charitable gift they get to deduct it against a 36 percent payment."No longer," he said. Ahearn said charitable deductions for those who make large gifts-financing for a hospital expansion, university project or something like that-soon apparently will be at the 28 percent rate at best. The result is that someone who gives $100,000 who previously would save $33,000 or $36,000 on a tax bill soon could save only $28,000.He said the basic charitable deduction likely will remain because of the strong support it has from those universities, hospitals and churches."Any time anyone mentions trimming it back, as Obama plans, there has been a strong pushback," he said. "You have to admire the gall of President Obama in taking this one on."He also said because of the economic situation that has developed this year, the "middle class" tax cuts that Obama promised during the campaign almost certainly will be no more than the $400 cuts that are scheduled for the tax withholding tables next month.Any other benefits for the middle class simply would be extensions of George W. Bush's policies, he said.According to the Chronicle of Philanthropy, United Jewish Communities is worried anything that would reduce donations would be "a disaster."The report estimated Obama's changes could cut by as much as 20 percent the money wealthy taxpayers could get in tax breaks."Any disincentive to charitable giving, especially in the current economic climate, will have an impact far beyond the black letter law," Sheldon Steinbach, a lawyer who represents colleges and universities,told the Chronicle. "It will have an exponentially negative impact."http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=92905
As in the days of Noah...
