One-third of Americans itemize their tax deductions, and 82% of them take a charitable deduction.So the potential of eliminating that deduction or putting an unreasonably lower cap on deductions have put charities on the offense:
Most Americans who file income tax returns won't be affected by proposed changes in how charitable contributions are deducted because they don't itemize their deductions, federal income tax records show.
But that hasn't stopped charity officials and others from lobbying Congress to fight any change in deductions as part of the "fiscal cliff" negotiations. That's because they draw billions of dollars from donors who itemize, and a huge chunk of those donations come from taxpayers who earn more than $500,000.
That has placed advocates for the needy in the position of lobbying for the nation's most advantaged. Last week, a coalition of charity officials and recipients lobbied Congress for two days as part of what they called "Protect Giving – D.C. Days."
"If taxpayers get no benefit for deductible expenses above a certain amount, say $50,000, then there is no tax incentive to have expenses once the cap is reached," said Roger Colinvaux, an associate professor at the Columbus School of Law at Catholic University.Read the rest of the story HERE.
Well, we know Vice President Biden isn't worried about this.