WASHINGTON, D.C.— Secretary Hillary Clinton will preserve the full scope and value of the charitable deduction, according to an analysis of her tax proposals released today by the Tax Policy Center (TPC). The Alliance for Charitable Reform commented on the news following the report’s release.
“We’re encouraged by Secretary Clinton’s proposal to carve out the charitable deduction from her 28 percent cap on all other itemized deductions. ACR has long believed that the charitable deduction is unique and not a loophole for the wealthy, but rather a lifeline for those in need,” said Sandra Swirski, executive director of ACR.
“We have seen the charitable community band together to remind all presidential candidates that any cut, cap, or limit would be detrimental to those who rely on charity and are gratified that most candidates have responded positively,” said Joanne Florino, vice president for public policy at The Philanthropy Roundtable.
An Analysis of Hillary Clinton’s Tax Proposals was released today by TPC, a joint project of the Urban Institute and Brookings Institution. The analysis states that the charitable deduction is exempt from Clinton’s proposed cap of 28 percent on itemized deductions.
“…Clinton would limit the tax benefit from specified deductions and exclusions to 28 percent. This cap reduces the value of deductions and exclusions for taxpayers in the 33 percent and higher tax brackets. The cap applies to all itemized deductions (except for charitable contributions), tax-exempt interest, excluded employer-provided health insurance, deductible contributions to tax-preferred retirement accounts, and certain other deductions,” the report stated.
As a member of the Charitable Giving Coalition, ACR is among 40 nonprofit organizations who submitted a letter last June to all candidates for President of the United States requesting their support for preserving the full scope and value of the charitable deduction in any tax reform proposal. The letter to the candidates can be read by clicking here.