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February 26, 2009

Obama's Budget Proposal Could Impact Charities

President Obama's plans for a healthcare overhaul could impact those who donate to charities, according to The Los Angeles Times.

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Under the president's proposal, joint filers making more than $250,000 a year would only recoup 28% of the value of qualified deductions, rather than higher percentages laid out under current law.

That could mean a couple in the 35% tax bracket who once could have recouped $3,500 of a $10,000 donation to a charity would now recoup only $2,800.

The White House estimates the change would generate about $318 billion over 10 years.

Here's more from The Wall Street Journal.

Households paying income taxes at the 33% and 35% rates can currently claim deductions at those rates. Under the Obama proposal, they could deduct only 28% of the value of those payments.
More

The changes would be phased in gradually over the next few years. For the 2009 tax year, the 33% tax bracket starts with couples with taxable earnings of $208,850, when adjusted for personal exemptions and various deductible expenses. A taxpayer in the top bracket paying $1,000 of mortgage interest, for example, would see a tax break worth $350 reduced to $280.

Comments

This was one of the platforms that concerned me regarding Obama's campaign. With the all the mania of Obama being different than Bush, his view on disempowering individuals through tax increases and subsequently disempowering non-profits is disheartening to the culturally savvy Christian. We could see it a long way off.

Do people really think the federal government can identify the concerns we as citizens have for our local communities? Pregnancy care clinics, for exmaple, are getting overshadowed by the federal money given to Planned Parenthood. How can we offset this when the people who can make a substantial difference to pregnancy clinics have to cough up more cash to fund the feds' programs.

Some communities have a higher cost of living... so increasing taxes to people in those areas, only diminishes the amount of good needed to be done by charities in those areas.

If we don't give from the heart but from the income tax form, we need to take another look in the mirror.

Pray Obama and his supporters will see their horribly wrong ways.
God Bless You and Pray for God's Help through these very rough times.
Craig F.