Romney Removing of the Charity Deduction

Although the Romney tax proposal still lacks any hard specifics, the closure of tax deduction for charities seems to vacate the conservatives belief that private giving rather than government should be the main source of public welfare with charitable contributions are partially exempt from taxation. Under the current tax code, people are allowed to deduct scores of expenses from their taxable income with deductions for charities just being one. 

With the closure of the charitable deduction people may respond by shifting priorities and cut smaller checks to churches, universities, and other favored charities. There is some debate that this is the sole reason for giving or that contributions will in fact diminish. Many believe that giving is a long standing tradition and support for one's own charity is a mainstay toward fulfilling a long-cherished belief. Since there are many who do not take a deduction the Romney proposal will have no effect. For those in higher tax brackets, there may be a hit to the charitable sector. 

Only time will tell if the proposal will even be suggested given the tremendous pushback that Romney will get. The issue may be moot if Romney is not elected, although the current administration has floated a similar proposal.



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