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Thursday, March 12, 2009

Will the Administration reconsider charitable tax deductions?



Over the past few weeks the Administration has been wavering over how to fund the new stimulus package. One recommendation was to limit the percentage of deductions for charitable donations along with limits on deductions for home mortgages. An article in the Wall Street Journal sites that this could have lost donations over $4 billion dollars if done in 2006. Who knows how much it could hurt in 2011 when it is proposed to begin. Now the Administration may be reconsidering this but it is still very unclear.

As the article points out, we'd like to think that people donate out of a desire to do good but let's face it... a healthy tax deduction can go a long way to loosen the purse strings and feel just as good.

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