Saturday, March 28, 2009
Oama and Non Profits
Will Obama kill charities? Maybe. His drive to tax high income eraners and reduce tax deductions looks pretty ominous. Take a look at the analysis of Dick Morris.
OBAMA SOAKS THE RICH: CHURCHES, DAY CARE, HOMELESS SHELTERS
By DICK MORRIS & EILEEN MCGANN
Published on DickMorris.com on March 28, 2009
President Obama's glib assertion that his reduction in tax deductions will not reduce donations is absurd. His pathetic defense at his press conference - that he would still give a $100 dollar check to charity even if he only got $11 less of tax deduction from it was both disingenuous and beside the point.
And his comment that his reduced deduction would only impact one or two percent of the nation misses the point that it is these folks who are doing almost half of the donating.
In 2006, the most recent year for which data is available, four million taxpayers had adjusted gross incomes of $200,000 or more. They comprised 3% of the tax returns, made 31% of the income, but donated 44% of all charitable contributions. Together, they provided charity with $81 billion in that year.
Obama's plan will cost them $10 billion in extra taxes on the income they allocated to charitable donations. How can the president be so glibly certain that they will not curtail their charitable contributions by a like amount or even more?
Imagine all the harm Obama's program will cause. Churches will be hit most hard. They account for the largest share of charitable donations, but universities, disease research, hospitals, soup kitchens, and cultural institutions will also be hard hit. So will international relief efforts that funnel aid abroad through churches or directly.
It is totally dishonest for Obama to pretend that his curtailment of these deductions won't hurt the poor. It will most directly impact them since most of the charities Obama is hurting focus on helping the impoverished.
This proposal is not about saving money. It is about controlling it. By, in effect, transferring at least $11 billion a year from private philanthropy to government spending, Obama empowers the public sector at the expense of the voluntary one.
President Obama's recommended reduction in the tax deduction for charitable giving reflects his fundamental belief that only the government can or should help the poor. He wants to keep the impoverished directly dependent on the government - and the Democratic Party - for their daily bread.
The voluntary sector has always been the backbone of compassion in the United States. Our charitable donations dwarf those of any other country. And our system of tax deductions for giving permits us to decide what charities are worthy of our generosity - a decision Obama will transfer to the politicians under his program.
Go to DickMorris.com to read all of Dick's columns!