President Obama’s proposed “American Jobs Act” will repeal charitable tax deductions for certain taxpayers. Eliminating tax deductions would allegedly raise approximately $400 billion to support Obama’s government stimulus bill and would, in turn, significantly decrease the amount of charitable donations, while increasing government glut.
Charities play a significant role in the every-day functioning and survival of Americans nationwide, and Obama is essentially seeking to replace those charities with more government.
Obama’s “jobs bill” would mean that taxpayers with adjusted gross incomes over $250,000 for married couples filing jointly (or $200,000 for single taxpayers) may deduct only 28 percent of the value of the charitable contribution. The limitation would affect itemized deductions and certain other tax expenditures that would otherwise reduce taxable income in the 36 or 39.6 percent tax brackets. A similar limitation also would apply under the alternative minimum tax. This section would be effective for taxable years beginning on or after January 1, 2013.
While Obama’s proposed “American Jobs Act” would take away money from charities, several radical left-wing groups, such as ACORN, would become eligible for up to $15 billion of federal funding. Moreover, the so-called “jobs bill” is just another federal stimulus program.
Mathew Staver, Founder and Chairman of Liberty Counsel, commented: “Rather than another government stimulus plan, the federal government ought to take less of people’s money so they can contribute it to nonprofit organizations that benefit society. The “American Jobs Act” decreases the role of charity, while increasing the role of government. It should be just the opposite.”
SOURCE: Liberty Counsel