White House Explains Reasoning Behind Charitable Deduction Cap - NPQ – Nonprofit Quarterly - Promoting an active an engaged democracy.

White House Explains Reasoning Behind Charitable Deduction Cap - NPQ – Nonprofit Quarterly - Promoting an active an engaged democracy.: February 16, 2012; Source: White House Blog | The White House has heard from a number of charities expressing opposition to President Obama’s (fifth-time-around) proposal to cap charitable deductions at the 28 percent tax rate for individuals earning $200,000 or more (or households earning $250,000 or more). Although the charitable deduction would be the only major tax benefit exempted from elimination as part of the president’s proposed “Buffett rule” regarding the taxes of millionaires and billionaires, the value of the deduction would still be capped at 28 percent for the top two percent of income earners. Jonathan Greenblatt, director of the White House Office of Social Innovation, has posted on the White House blog to explain the elements of the president’s reasoning. Here they are, in paraphrased form: