ACR recaps highlights from the President’s State of the Union Address
Following is a broad summary of the proposals offered by the President (select ‘Continue reading’).
The important take-away from his speech is that the Administration has made a hard pivot away from health care reform, which wasn’t mentioned until half an hour into the speech, toward job creation in a clear effort to win back some of the political favor lost over the last few months. This new focus, combined with his plan to freeze government spending, will no doubt send Congress searching for additional revenue raisers – potentially including higher marginal tax rates for those singles earning more than $200,000 and couples earning more than $250,000.
ACR will be carefully monitoring both the President’s FY 2011 Budget and Congress’ work on the budget for any potential issues relating to the nonprofit sector. As always, we will continue to keep you updated on the latest.
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Quick, bi-partisan legislation allows donations to Haiti relief to be claimed on 2009 taxes returns
Reacting quickly to the Haiti Relief effort, the House and Senate have passed legislation, HR 4462, meant to encourage donations for Haiti earthquake relief efforts. This legislation allows individuals to claim on their 2009 tax returns, a donation made in 2010 for Haiti earthquake relief. The President signed the bill into law on Friday, January 22nd.
Potentially in addition to HR 4462, Senators Charles Schumer (D-NY) and Kirsten Gillibrand (D-NY), have stated their interest in introducing legislation that would temporarily eliminate the 50% deductibility limit for individuals donating to earthquake relief, similar to legislation passed after Hurricane Katrina to encourage additional donations. Currently individuals are allowed to deduct up to 50% of their adjusted gross income in one year. This legislation would also extend the enhanced deduction for charitable food inventory contributions through 2010, which allows companies to deduct the market value of their donation, as opposed to just the cost to produce the food.
Illustrative graphic breaksdown the current tax burden by income tax unit.
http://www.mint.com/blog/trends/who-is-paying-taxes/?display=wide
