Submitted by Geoffrey Peters, CEO, Moore DM Group
In conjunction with his State of the Union address, President Obama released his budget and capital gains proposal. In his budget, as in the past, he proposed a 28% cap on the charitable deduction despite substantial research by many economists and others that any such cap reduce charitable giving by as much as $9.4 Billion, far more than any projected tax revenue. On the other hand, the capital gains proposal offers a deduction (limited to 28%) against capital gains for any charitable gifts. This is all likely to be further negotiated in the House Ways and Means Committee chaired by Rep. Paul Ryan (R-WI) and the Senate Finance Committee chaired by Sen. Orrin Hatch (R-UT) in the coming congressional year.