Jul 1, 2011
White House Proposes Cuts to Charitable Deduction as Part of Debt Package
In the continued effort to offset the $400 billion cost of increasing the debt limit, the White House again called for capping itemized deductions at 28%, down from the current 35% top rate. This provision would include the charitable deduction.
The proposal, similar to what President Obama included in his FY2012 budget proposal, would raise $293 billion over 10 years. Republicans roundly rejected this provision after the budget’s release, and with their well-publicized aversion to including tax increases in the Biden talks, we believe this proposal will not progress. We will, however, keep our ears to the ground and provide you with any more updates.