- March 2011
- New Tax Deal Lowers Estate Tax and Extends IRA Charity Break
- Democrats Turn Back Republican Health Care Repeal Amendment
- House & Senate Committees Hold Hearings on Tax Reform
- Obama's Budget Plan Calls for Cut in Charitable Deductions
- Republicans Propose Big Federal Budget cuts That Impact Non Profits
- Many Nonprofits Face Lawsuits over Madoff's Fraud
- Senator's Investigation into Ministries Leads to Tax Review
- Officials Say Oregon Charity Shifted Millions to Iran
- Budget-Strapped Cities Charge Nonprofits New Fees
- Nonprofits in CA Face More Fiscal Strain
- Virginia A.G. Says No State Funds Can Legally Go To Charities
- NV Court Rules Donor-Advised Funds Can Ignore Donor Advice
- CT University Fights to Preserve Donor List Confidentiality
- OR Sues Veterans Charities Accused of Misusing Funds
- The IRS Steps Up Scrutiny of Nonprofits
- IRS Investigates CA Hospital's Charity's Nonprofit Status
- Automatic Revocations Will Reshape Nonprofits Beyond 2011
- Postal Rates to Increase in April 2011
- All Pages
Obama’s Budget Plan Calls for Cut in Charitable Deductions
President Obama proposed to sharply limit the value of charitable tax breaks taken by wealthy people. In his budget proposal for FY 2012 (which begins on Oct.1, 2011) he wants to reduce by 30% the amount people can write off for all types of itemized deductions. Specifically, his proposal would limit itemized deductions to 28% for taxpayers in the highest brackets.
Obama also said he would push to end the tax cuts for Americans making $250,000 or more when they expire in two years. Without further action to extend the Bush-era tax cuts for the wealthy, the top tax bracket, currently at 35%, would rise to 39.6% in 2013.
Although President Obama recently signed legislation that set the estate tax rate at 35% and allows couples to pass estates as large as $10 million to their heirs tax-free, Obama wants to return to 2009 estate tax levels, when the first $3.5 million for individuals and $7 million for couples, was exempt from tax and the tax rate was set at 45%.