Latest News
Consider This…
Back in February of 2010, the Washington area experienced what came to be known as “Snowmageddon.” In our suburban Maryland backyard, we measured a full 37 inches of snow!
But hang on to your hats. The events leading up to the end of this year could put “Snowmageddon” to shame. We are talking about “Taxmageddon.” That is the term Congressional staffers have devised to describe what we may be facing on the tax front come January 1, 2013.
Continue reading...
The latest edition of the ACR newsletter is available below. Here are highlights:
Upcoming Event Summit for Leaders
Washington Roundup:
- President’s Budget
- Payroll Tax Cut Extension
- Tax Reform
Consider This:Are Ready for “Taxmageddon”?
Continue reading...
By Heather Higgins
In every budget President Obama has sent to Congress, he has signaled to the American public that promoting private giving is not his priority: each year he has proposed a cut to the charitable deduction. He didn’t let us down this year, again choosing to devalue charitable giving by proposing to limit the charitable deduction.
In this year’s budget proposal, the president added a new twist to the narrative. He included his principles for tax reform in the budget. The “Buffett rule” was one of those principles, which would set a minimum tax of 30% and eliminate all deductions on anyone making $1 million or more, although under the Buffett Rule, the charitable deduction would be the only deduction preserved. The president is sending mixed messages to the charitable community. On one hand, he wants to scale back the charitable deduction for anybody making over $250,000, but on the other hand, he emphasizes its importance by leaving it as the only deduction for those subject to the Buffet rule.
Continue reading...
BNA
Key Development: Proposes 28 percent limit on charitable deductions for the wealthiest Americans.
Potential Impact: Maintains the status quo on deductions rather than providing a special rule for charities.
Next Steps: Obama’s budget faces tough scrutiny as Congress forges a compromise plan for FY 2013.
President’s Obama’s fiscal year 2013 budget proposed a 28 percent limitation on itemized deductions for the wealthiest Americans—including the charitable deduction.
Charities had hoped the budget, released Feb. 13, would continue to single out the charitable deduction as the only deduction not to be capped at 28 percent (17 DTR G-4, 1/27/12).
Instead, the budget would reduce the value of itemized deductions and other tax preferences to 28 percent for families with incomes of more than $250,000, and individuals making more than $200,000.
Continue reading...
Budget also Lays Out Tax Reform Principles, Includes Tax Hikes and the “Buffett Rule”
For the fourth time the President’s budget has devalued private giving by proposing a limit on the charitable deduction. The Alliance for Charitable Reform (ACR) and others in the nonprofit sector have repeatedly opposed this proposal because it will diminish a strong incentive to give to charity.
“The President is sending mixed messages to the charitable community. On one hand, he wants to limit the charitable deduction. On the other, he wants millionaires to continue to give to charity while also paying higher taxes. ACR believes, and many others in Congress agree, that we should encourage and incentivize private charitable giving,” said Sue Santa, senior vice president of The Philanthropy Roundtable. “Charities are being forced to do more with less. The charitable deduction encourages people to give and now is not the time to experiment with it. We are hopeful that through this budget process, President Obama and leaders in Congress can come to an agreement that both encourages philanthropy and is good for our country”
Continue reading...
Further Reading
Consider This…
So we wonder, what do people think when they hear the President talking about the Buffett Rule?
Well of course all of you astute readers know that the Buffett Rule is all about billionaire Warren Buffett’s tax rate and not about a salad bar that goes on for miles. President Obama’s basic premise behind the Buffett Rule is this: millionaires and billionaires should not have a lower tax rate than their secretaries, the police officer that protects them or the teacher that educates their children.
Some wonder how that that scenario could be possible. It’s possible because…
Continue reading...
The latest edition of the ACR newsletter is available below. Here are highlights:
Upcoming Event Summit for Leaders
Washington Roundup:
- Tax Proposals
- Payroll Tax Cut Extension
- Senator Grassley’s Commission
Consider This:Buffett or Buffets – Our take on the new tax restrictions
Continue reading...
Three-fourths of Americans Support Tax Incentives for Charity
WASHINGTON, D.C.— A new study on attitudes toward charitable giving shows overwhelming support for private giving to charity as well as support for the charitable deduction. This study comes on the heels of the President stepping away from his previous proposals to limit the charitable deduction.
“The results of this survey reflect what ACR and the nonprofit sector know to be true: the charitable deduction and incentives to give are important,” said Sue Santa, senior vice president for public policy at The Philanthropy Roundtable. “We hope the President and Congress recognize the importance of this incentive to give in the same way the American people do.”
Continue reading...
By Rep Robin Hayes
Published by The Hill newspaper
For the last 3 years, we have been able to rely on President Obama for a few things in his budget proposals. Obviously increased spending comes to mind, but something else has been particularly disturbing: his attack on philanthropy and charities.
While there is hope the president has heard the voices of the charitable community, he needs to be clear about his plans and there are three reasons why…
Continue reading...
BNA
By Diane Freda
The charitable contribution deduction is the only deduction that would be allowed under the Buffett rule tax proposed by Sen. Sheldon Whitehouse (D-R.I.), in legislation that would ensure that millionaires pay a minimum effective 30 percent tax rate, charitable sources told Bloomberg BNA Feb. 2.
“The legislation builds on what the president’s blueprint stated, which was that the administration is going to impose the [Buffett rule tax] on individuals with certain high incomes, but is going to hold harmless their contributions to charity,” Sandra Swirski, executive director of the Alliance for Charitable Reform, said.
Continue reading...
