Obama administration to greatly damage charitable giving

With all the outrageous big-spending, high-taxing, borrow-busting programs being pushed by the Obama administration, not much has been mentioned about Obama's plans to greatly reduce charitable deductions for "rich" people. According to "The Wall Street Journal," the Obama budget will reduce the charitable deduction for individuals making more than $164,550 and for families making more than $208,850.

The reason that this is so outrageous is that people not so well off in America have come to rely on the charities which these so-called "rich people" have contributed to over the years. Obama intends to raise an estimated $318 billion in new taxes over a ten-year period by reducing the value of such deductions as charitable donations (as well as mortgage interest) for those individuals in the highest tax brackets.

American households which are paying taxes under the 33% and the 35% rates under current law can claim deductions at those rates. However, Obama will try to make it so that these "rich people" can deduct only 28% of the value of those payments. "The Wall Street Journal" said that it is concerned that Obama's tax changes will discourage giving among the wealthy.

In these dire economic times, now is not the time to further discourage giving by any Americans to charitable causes. Hopefully, there will be enough members in Congress with commonsense to not let these draconian measures go into effect.

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