Obama Targeting Charitable Deduction to Fund Jobs Bill | Planned Giving Design Center

Obama Targeting Charitable Deduction to Fund Jobs Bill | Planned Giving Design Center: The White House has released details of President Obama's $447 billion jobs bill. The plan proposes to finance the measure by reducing the tax benefit wealthier taxpayers receive from their itemized deductions, including the charitable deduction, to 28 percent. Thus, a taxpayer in the 35 percent top marginal bracket who gives $100,000 to charity will receive $7,000 less in tax benefit than they receive today. Similar proposals have failed in the past and charity officials are now arguing the plan would be counterproductive because reducing the tax benefit of the charitable deduction will reduce contributions to and jobs within the nonprofit sector at the same time the government is seeking to increase employment.