The Politico recently ran an article or post entitled Will Obama Budget Doom Philanthropy. Much of what is in the article has been previously posted on here on the AW Blog. The article continues to debate weather individuals will continue to give at the same levels as under existing tax laws. I agree that many of the ultra wealthy will continue to give and donate and the same levels, it is those that are just over the threshold of the new tax law, the $250,000+ income level that concerns me.
The good news is there is a fair amount of opposition in both parties about this potential change in the tax code. The Politico states Senate Democrats like Max Baucus (D-Mont.) and Robert Menendez (D-N.J.) have expressed opposition. And House Ways and Means Committee Chairman Charles B. Rangel (D-N.Y.) said, “I would never want to adversely affect anything that is charitable or good.”
The Politico report continues Moreover, while most nonprofits do rely on major donors, they cannot survive without the many middle- and upper-middle-class givers at the center of any philanthropic pyramid. Obama’s plan will undoubtedly affect them.
We asked Daroff whether the optimists were correct. He pointed out that even under the rosiest assumptions by the Center for Budget and Policy Priorities, a group close to the Obama administration, the budget would spell billions in lost contributions.
In any event, I believe the increase in taxes on charitable donations is not good for the arts, and as many institutions are currently struggling, increasing taxes on donations would only make matter worse. It is my hope that this section of the proposed tax law is removed.
To read the Politico story and analysis on the potential changes in donation tax law, click HERE.
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