NonProfit times: Clinton Tax Plan Supports Charitable Deduction

The NonProfit Times is reporting that under a tax proposal put forth by Democratic presidential hopeful Hillary Clinton, the charitable deduction would be exempt from a 28-percent deduction cap  and the estate tax exclusion would return to 2009 levels.

The report is based on an analysis conducted by the Tax Policy Center (TPC).  TPC is a joint project of the Urban Institute and the Brookings Institution.

According to the Times:

The tax benefit from specified deductions and exclusions would be limited to 28 percent. The cap would apply to all itemized deductions except charitable contributions but would reduce the value of deductions and exclusions for taxpayers in the 33 percent and higher tax brackets.

The proposals also would permanently reduce the tax threshold for estate taxes to $3.5 million ($7 million for married couples) with no adjustment for inflation, increase the top tax rate to 45 percent, and set the lifetime gift tax exemption at $1 million. In 2015, the basic exclusion for the estate tax is $5.45 million and Clinton’s plan would return it back to 2009 levels.

The Times further reports that the Association of Fundraising Professionals (AFP) and the Alliance for Charitable Reform (ACR) have both come out in support of Clinton’s proposal.

VEJ