Tuesday, July 20, 2010
Philanthropy and the estate tax - CSMonitor.com: "When President Obama proposed to cap the value of itemized deductions at 28 percent, the philanthropic sector came out foursquare against the idea, claiming that it would decimate charitable contributions. Cutting the tax savings from gifts to charities for high-income taxpayers would raise the after-tax cost of giving and lead people to give less. For taxpayers in the 35 percent top tax bracket, the cost of giving away a dollar would jump 10 percent from 65 cents to 72 cents (ignoring any state tax savings). That would lead to perhaps a 2 percent drop in giving—about $9 billion."