Obama takes aim at charitable deductions

robertsmug7President Obama’s proposal to pay for health care reform in part by reducing wealthy Americans’ tax break on charitable donations is making charities nervous. Administration officials say the reduction will be modest and questions whether givers will be deterred. But “I don’t understand why the administration would try to create any disincentive that reduced any donations to charity,” said Sen. Pat Roberts, R-Kan. Under Obama’s plan, top-bracket taxpayers could see their deduction for every donated $1 decline from 35 cents to 28 cents. In 2006 those 2 percent of taxpayers — the families earning more than $250,000 — did 28 percent of the charitable giving.