Obama Reduces Charitable Deductions

For the 5% of Americans whose household income exceeds $250,000 a year, those families can currently save $350 in taxes for every $1,000 donated to charity.

Under the new Obama plan, that amount would drop to $280 per $1,000 donation.

“By doing this, you raise the cost of giving” said Roberton Williams, a senior fellow at The Tax Policy Center, a liberal Washington think tank.

By Williams’ calculations, the change will result in a 10% drop in charitable giving by wealthy Americans, who typically contribute about 20% of all charitable dollars. In real dollars, Williams projects a decline of about $6 billion in charitable donations because of the change.