In a recent opinion piece in The Star-Telegram, two nonprofit executives argued that the charitable deduction should be spared in the effort to reduce the federal deficit. Nancy E. Jones, president and CEO of the Community Foundation of North Texas, and Tim McKinney of the United Way of Tarrant County, urged Congress and the Obama administration not to eliminate or reduce the tax deduction that donors currently receive.
According to the Telegram piece, the current proposal is to cap itemized deductions from 35 to 28 percent. Jones and McKinney say that this would negatively impact the millions of Americans who rely on the programs and services that charities like the United Way provide. They also argue that not only is the charitable deduction fair, but it is also a great way for the government to invest in communities. The article uses the following example to make its point: When someone in the highest tax bracket makes a $1,000 donation to charity, the government forgoes $350 in tax revenue. This allows the entire community to benefit from the individual's donation.
Jones and McKinney end their piece by urging those that agree with them to contact their members of Congress. You can read the full article by visiting The Star-Telegram online. In addition, Independent Sector has come out against this proposed change. You can visit their website for a list of resources to have your voice heard on this issue.
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