For almost a century, Washington has recognized the value of incentivizing charitable giving through our tax code. Americans rely on charities to provide a safety net for the hungry and poor, crisis relief, and health care. Nonprofits are also vital to our economy, generating $1.1 trillion every year in the form of jobs and services. These charities rely heavily on private donors.
Historically, proposals to limit charitable deductions have been met with broad bi-partisan opposition, but President Obama's budget proposal would limit such deductions. Under his proposal, charitable donations would almost certainly decline.
Congressman Sensenbrenner: "Charitable deductions should be exempt from political attack as we work to restructure our tax code. Americans appreciate the significance of our philanthropic sector as charity is engrained in America's moral fiber. We must continue to encourage communities to take care of one another rather than instill ever-growing reliance on government. I will fight to protect charities and those who rely on them from the Administration's misguided policies.
"I recently introduced H.R. 1479 to affirm America's commitment to protecting charitable giving by exempting charitable deductions from Pease limits. The bill emphasizes the importance of charitable deductions to ensure that we do not dissuade giving."