07 October 2011

Charitable Deduction Saved –for Now

Senate Majority Leader Harry Reid (D-Nev.) announced on October 6th that he removed the charitable deduction cap from the American Jobs Act. Included in the President’s bill was a 28% cap on itemized deductions (including the charitable deduction) used as a pay-for (along with others). Senate leaders substituted the itemized cap with a 5.6 percent surtax on individuals making more than $1 million a year. The surtax, which has been endorsed by the White House, is expected to raise $445 billion over 10 years.

The NonProfit Times reports on this new development and also highlighted the efforts by groups such as ACR and the Independent Sector to inform members of Congress of the impact the cap would have had on communities across the country.

For the full article, click here.