Some worry that Obama’s plan to reduce tax deductions for charitable contributions poses a real threat to philanthropy. But if you’re an arts organization, soup kitchen, or church, only the top 3% of your donors will be affected.
Of course, that 3% of taxpayers represents 44% of your charitable contributions, as Dick Morris explains.
Obama’s plan will cost them $10 billion in extra taxes on the income they allocated to charitable donations. How can the president be so glibly certain that they will not curtail their charitable contributions by a like amount or even more?
Imagine all the harm Obama’s program will cause. Churches will be hit most hard. They account for the largest share of charitable donations, but universities, disease research, hospitals, soup kitchens and cultural institutions will also be hard hit. So will international relief efforts that funnel aid abroad through churches or directly.
The government needs the additional taxes, however, to pay for all the good things it has planned – things like homeless shelters, soup kitchens, and a new Secretary of the Arts.
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