The New Ledger
....The tax increase is a new proposal from Mr. Obama, and would limit deductions for filers in the 33% and 35% tax brackets.
Under current law, taxpayers who itemize calculate their deductions
based on their income tax bracket. A taxpayer who pays a 35% rate on
his income may deduct 35% of various expenses — such as mortgage
interest or charitable contributions — from his taxable income.
Under the Obama proposal, these deductions would be limited to a maximum of 28%, even for taxpayers paying higher tax rates.
Essentially, Obama removes any tax incentive for individuals to give
at the levels they have in recent years, an effective declaration of
war on every major nonprofit in the country that survives primarily on
individual giving — particularly thinktanks and private academic
institutions. Foundation giving is already ravaged thanks to the poor economy (and if history is a guide,
it’ll get worse before it gets better) — Jewish philanthropy in
particular is hurting thanks to Bernie Madoff — now this new policy
would wreck the tax incentive for charitable giving as well.
The good people at the Chronicle of Philanthropy were stunned by the news:
“It seems like unusual public policy to try, as the
President announced to the Congress this week, to return the United
States to world leadership in access to higher education and then make
it more difficult for extraordinary donors to contribute great gifts to
colleges and universities,” Mr. Flessner said. “Likewise, it seems like
unusual public policy to penalize the great medical centers that
contribute so much to scientific breakthroughs by making it more
difficult for donors to make the six-, seven-, eight-, and nine-figure
gifts.”
The ridiculous nature of this policy is that it would strike a blow
against those who were generous — those who give nothing to charity
will experience no tax increase whatsoever. And while it’s true that
many people support philanthropic causes without considering the net
cost after the charitable deduction, giving people a reason not to give in a time of crisis is almost always a bad idea.
We all knew that Obama’s enormous spending intentions would need an
offset in the form of a tax hike — and most of us assumed the majority
of that cost would come in the form of a tax hike on the rich. But why
in the world would you place a tax hike on the money the rich were
planning to give away? It’s a decision that at the very least,
President Obama must explain.
The easy answer: To make people dependent on the Democrats! Period, end of story.
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