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OU Criticizes Obama’s Charity Tax Proposal

The Union of Orthodox Jewish Congregations of America, the nation’s largest Orthodox Jewish umbrella organization, expressed concern about the impact President Obama’s 2015 budget proposal could have on the level of charitable giving in America.

As in past budgets, the president once again proposed that higher-earning taxpayers (married couples earning more than $250,000 and individuals earning more than $200,000) have their tax deduction for charitable contributions reduced to a maximum rate of 28 percent of their donations. Thus, for example, a person who is taxed at a rate of 35 percent making a $10,000 contribution to a charity would have his deduction reduced from $3,500 to $2,800 under the president’s proposal.

Nathan Diament, executive director of public policy for the Orthodox Union, stated, “The Orthodox Union, like others in America’s nonprofit sector, is deeply concerned over President Obama’s budget proposal to reduce the tax deductibility for charitable donations. Tax deductibility is an essential component to the fundraising efforts of so many Jewish organizations and charities. Without this incentive, we risk losing the funds necessary to provide essential programming and resources to our fellow citizens. Experts have estimated that such a change in the tax law could reduce donations to American charities by approximately $4 billion annually. We are committed to working with our allies in Congress and across the nonprofit sector to prevent this harmful proposal from being enacted.” v

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Posted by on March 7, 2014. Filed under In This Week's Edition. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.