>> Hearing on the Charitable Deduction
>> Next Deadline is Right Around the Corner
On Monday, President Obama signed a bill lifting the federal government’s borrowing limit (also known as the debt ceiling) until mid-May. This is a novel twist since typically the borrowing limit is increased by a specific dollar amount rather than via a calendar date. The bill will also withhold lawmakers' salaries if their respective chambers fail to pass a budget by April 15, a creative way to apply pressure to act. Last week, the Senate also approved Senator John Kerry (D-MA) to become the next Secretary of State, replacing Hillary Clinton. He was officially sworn in on Wednesday, February 6th. Kerry had been on the Senate Finance Committee so his departure opens up a seat on this committee that is important to the charitable sector and the charitable deduction.
Hearing on the Charitable Deduction
On Tuesday, February 5th, House Ways and Means Committee Chairman Dave Camp (R-MI) announced
a hearing on “Tax Reform and Charitable Contributions” as part of the Committee’s ongoing work toward comprehensive tax reform. The hearing will be held at 9:30AM on Thursday, February 14th. As we understand it, the purpose of the hearing is to allow stakeholders to officially weigh in on how changes to the charitable deduction might impact the vital services the sector provides. Chairman Camp said, “Public charities and private foundations perform invaluable services for our society, especially during this time of economic slowdown and high unemployment. These organizations depend upon the goodwill of the American people – the most giving and charitable people in the world. Because of the critical role that charities play, the Committee must hear directly from the charitable community before considering any proposals as part of comprehensive tax
reform that might impact their ability to obtain the resources they need to fulfill their missions.” keep reading >>
Next Deadline is Right Around the Corner
While a short-term fix on the debt ceiling is in place, there are still several key dates for lawmakers over the next several months. The first is the President’s State of the Union Address, scheduled for Tuesday, February 12th. Reports
suggest that the President will build upon the policy items mentioned during his inaugural address: government spending, immigration, gun control, and electoral changes. We have not heard any details about the President addressing tax reform in this speech, but we expect he will highlight the recent tax increases and call for more revenue through the tax code. Indeed in a recent appearance on CBS News, the President specifically mentioned closing more "loopholes" and deductions as a way to raise more revenue. As you are well aware, the President has called for capping itemized deductions, including the charitable deduction, at 28 percent in his previous
budget proposals and we expect he will do so again. The President’s budget is now overdue, but we expect the administration to send it Congress sometime in the near future. keep reading >>