Jump directly to the content

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.

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.

Related Topics:Politics
Posted:February 26, 2009 at 4:19PM
Gleanings aggregates what others are reporting. Learn more.
Recent Posts
What Evangelicals Think About Scotland's Independence Vote
(UPDATED) After narrow "No" vote, Scottish evangelicals say churches will take lead in building the 'new Scotland.'
Lecrae Brings Reformed Rap to Jimmy Fallon’s Tonight Show
(UPDATED) Performance with The Roots was the first by a Christian rapper on late-night TV.
James MacDonald Asks Forgiveness for Unbiblical Discipline of Harvest Bible Chapel Elders
Megachurch pastor confesses board slandered three elders as 'false messengers' last year.
Does Islam Encourage Violence More Than Other Religions?
New Pew survey examines who says yes and no.
Christianity Today
Obama's Budget Proposal Could Impact Charities