01 January 2012

Charitable Deduction — Proposals

Proposals to eliminate or limit the deduction for charitable gifts.

28% Cap: President Obama has proposed limiting deductions (including the charitable deduction) for high-income earners from 35% to 28% in several proposals over the past few years.

Dollar Cap: During the 2012 campaign, presidential candidate Governor Mitt Romney suggested he would support a cap on deductions, including the charitable deduction, at between $17,000-$25,000 for a middle-class family and even lower for higher-income earners.

2% Floor: House Ways and Means Chairman Dave Camp’s (R-MI) “Tax Reform Act of 2014” includes a 2% floor on the charitable deduction. The 2% floor excludes donations from the charitable deduction that are below 2% of a donor’s adjusted gross income (AGI).