Mar 30 2009
Up for Debate: Would a decreased tax deduction percentage keep you from giving to charity?
President Obama’s proposal last week to lower the United States’ charitable deduction tax for wealthy donors has charities worried that the big givers they rely on so heavily to pull them through tough economic doldrums won’t give so much any more. The current tax deduction on lower and middle income donors is 28% while those making $250,000 or more consistently receive a deduction of 35%. Obama plans to flatten the tax at 28% for all Americans. However, this change would mean that a donation of for example $100,000 would would be taxed for 7,000 more dollars.
President Obama’s ethical imperative as well as my own on this on the subject is as follows:
“I think it’s the right thing to do,” he said of reducing the deduction. “People are still going to be able to make charitable contributions. … Now, if it’s really a charitable contribution, I’m assuming that that shouldn’t be the determining factor as to whether you’re giving that $100 to the homeless shelter down the street.”
To be fair, the concern is justified on the part of charities to think that this percentage reduction may steer donors away from large donations, but last I knew, charity was defined similarly to as it is stated in the Merriam-Webster Dictionary:
Middle English charite, from Anglo-French charité, from Late Latin caritat-, caritas Christian love, from Latin, dearness, from carus dear; akin to Old Irish carae friend, Sanskrit kāma love
Date:
13th century
1: benevolent goodwill toward or love of humanity2 a: generosity and helpfulness especially toward the needy or suffering ; also : aid given to those in need b: an institution engaged in relief of the poor c: public provision for the relief of the needy3 a: a gift for public benevolent purposes b: an institution (as a hospital) founded by such a gift4: lenient judgment of others.
Does charity ever have stipulations or a personal agenda? If it does, can it be called charity at all?
Wax charitably.
Share this post with others:
Stumble It!
