Charitable Deduction Limit Successfully Dropped on Capital Hill

The Jewish Federation of Greater Seattle applauds the Senate Democratic leadership for rejecting a proposed limitation on itemized tax deductions, including the charitable contribution deduction, as a means to help pay for a proposed jobs bill.

The Jewish Federations of North America, our parent organization, is leading a broad-based coalition of charitable organizations that has been opposing several administration attempts over the last three years to impose a limit on the deductibility of charitable contributions for those with taxable incomes in excess of $200,000.

"The defeat of this onerous proposal is due, in no small part, to the activism of Jewish Federations and communal leaders who expressed their opposition to Senators, Members of Congress, and the Administration," said William C. Daroff, Vice President for Public Policy, and Director of the Washington Office.

"The Jewish Federations continue to be concerned about the administration's focus on placing a stumbling block in front of the ability of charities to raise funds, at a time when we are serving as a much-needed safety net for the vulnerable who are suffering during the economic downturn," Daroff added.

"While we are hopeful that this most recent defeat of cutting incentives for charitable contributions will be the end of this flawed proposal, we anticipate seeing it again during the deficit reduction negotiations that are underway among House and Senate leaders. We will continue to fight it -- and continue to defeat it."

Senate Democratic leaders rejected the administration's proposal to help pay for the cost of the $447 billion America Jobs Act by capping tax deductions and exclusions, including the charitable deduction. A Senate vote on the revised jobs bill could occur as early as this week. However, as Congress continues work on deficit reduction it is important to note that the limitation on itemized deductions, including the charitable contribution deduction, is still part of the Administration's formal recommendations to the Joint Select Committee on Deficit Reduction, which is charged with finding at least $1.2 trillion in deficit reduction by November 23. JFNA will continue to play a leading role in advocating against this policy change.