8/3/2019 OBAMA BUDGET HURTS CHARITIES

http://slidepdf.com/reader/full/obama-budget-hurts-charities 1/2

 

For Immediate Release: 

February 13, 2012

CONTACT 

Michelle Blundell

202-478-6176; mblundell@mrss.com 

Aaron Eske

202-664-4280; aeske@mrss.com 

OBAMA ADMINISTRATION BUDGET THREATENS CHARITABLE GIVING

Proposal would result in America’s charities losing billions of dollars in donations

WASHINGTON, DC – In response to the Administration's Budget release today that once again limits the

value of tax deductions for charitable contributions, leaders from The Jewish Federations of North

America -- one of America's largest philanthropies -- released the following statements:

William Daroff, vice president for public policy and director of the Washington office of The Jewish

Federations of North America:

"Despite the fact that the White House had recently indicated that its tax reform proposals would not

disincentivize large charitable gifts, today's Budget release is disappointing for America's charities and

the millions we support, particularly during this time of economic distress. The Administration has once

again proposed limiting the value of charitable contributions. Such a change in the U.S. tax code will

result in America's charities losing billions of dollars a year in private support that our country

desperately needs. As in past years, we will work with Members of Congress to defeat this misguided

proposal."

Kathy Manning, chair of the Board of Directors of The Jewish Federations of North America:

"We understand the need to find ways to address the country's significant budget dilemma.

Nevertheless, taking steps that could diminish charitable contributions at a time when so many

Americans in desperate financial straits are dependent on the services of charitable organizations is the

wrong approach. We urge our government to find an alternative for increasing revenues that will not

have an adverse impact on the very organizations that are working to provide help to so many

Americans who are struggling in these tough financial times.”

Further Background:

Unlike other tax incentives, the charitable deduction is unique in that it promotes behavior that provides

no direct benefit to the donor.

Specifically, the Administration's FY 2013 budget states:

Reduce the Value of Itemized Deductions and Other Tax Preferences to 28 Percent for Families With

Incomes Over $250,000. Currently, a millionaire who contributes to charity or deducts a dollar of 

mortgage interest, enjoys a deduction that is more than twice as generous as that for a middle-class

family. The proposal would limit the tax rate at which high-income taxpayers can reduce their tax

liability to a maximum of 28 percent, affecting only married taxpayers filing a joint return with income

over $250,000 (at 2009 levels) and single taxpayers with income over $200,000. This limit would apply

8/3/2019 OBAMA BUDGET HURTS CHARITIES

http://slidepdf.com/reader/full/obama-budget-hurts-charities 2/2

to: all itemized deductions; foreign excluded income; tax-exempt interest; employer sponsored health

insurance; retirement contributions; and selected above-the-line deductions. The proposed limitation

would return the deduction rate to the level it was at the end of the Reagan Administration. It would

reduce the deficit by $584 billion over 10 years.

The Jewish Federations , collectively among the top 10 charities on the continent, protects and enhances

the well-being of Jews worldwide through the values of tikkun olam (repairing the world), tzedakah

(charity and social justice) and Torah (Jewish learning).