Yesterday we told you about Democratic Senators’ proposals to cut charitable deductions. Now Republican Rep. David Reichert is spreading the word that Republicans don’t agree.
In an interview with The Chronicle of Philanthropy, Reichert affirms that he has never supported a cap on the charitable deduction and neither have any of his Republican colleagues. He takes the opportunity to both support charities, stating that they are “vital to the success of many in our society,” and confirm his disagreement with President Obama, clarifying that he thinks money is better off in private hands than included in government spending.
Nonetheless, Reichert does concede that the Democrats’ idea to replace the deduction with a 12% tax credit available only for amounts beyond 2% of a taxpayer’s adjusted gross income may actually increase giving.
To figure it all out, a House Ways and Means Committee is examining how changes in the tax code will affect charities. If the proposed changes will affect your nonprofit, make sure to submit your comments to [email protected]. Public comments will be accepted through April 15.