Federations Unhappy With Obama Tax-Deduct Plan
The Jewish Federations of North America criticized how President Obama proposes funding his jobs bill, although it has praised other elements of the bill.
The jobs bill introduced last week would cut write-offs for charitable donations from 35 percent to 28 percent for those earning $200,000 a year or families earning $250,000 as a means of funding in part its other proposals, which include payroll tax cuts and increased hiring of teachers, first responders and others.
“Limiting the itemized deduction would certainly lead to a significant decrease in charitable contributions,” William Daroff, the Washington JFNA director, told the Chronicle of Philanthropy in a story that appeared online Tuesday. “If charities have less resources, they’ll be forced to choose between laying off employees or cutting needed services. Nonprofits employ almost 10 percent of the work force nationwide, and in many states nonprofits are the largest employers. In our view, cutting the deduction is like cutting your nose to spite your face.”
JFNA had praised the bill for the proposed payroll cuts and subsidies for hiring the long-term unemployed.
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