Friday, July 10, 2009

Charitable Deductions Update

A NYT story today on the apparent "collision course" between House and Senate Democrats "over how to pay for a sweeping overhaul of the nation’s health care system" notes that "the president, in his initial budget, had called for capping certain deductions, including those for charitable contributions, at the 28 percent income tax bracket, an idea initially rejected by a number of Democrats in Congress," but says that "some lawmakers who opposed Mr. Obama at that point said they were willing to consider a higher limit — at the 35 percent bracket — [when] the highest tax bracket reverts to 39 percent if the Bush tax cuts are allowed to expire."