Sunday, March 1, 2009

Charities Nervous About Proposed Limits on Tax Deductions for Giving

US charitable organizations are nervous about proposed limits on tax deductions for contributions. Under the president's plan, families making over $250,000 would see the rate at which they are permitted to itemize such deductions capped at 28 percent--regardless of which bracket they find themselves in (estimated to be about 35 percent in 2010, and about 39 percent in 2011).

Now I hope that our national generosity of spirit will not be dampened in the event that the proposal goes through. After all, cheerful giving is the best kind of giving. But it is certainly possible that, at the margin, there could be disincentive effects. And CNBC's Maria Bartiromo is convinced the effects will not be small. Check out the language she uses:

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