Apparently, conservatives and the religious are not the only ones displeased by Obama’s latest idea to grow the Nanny State by offering a “disincentive” on high levels of charitable giving. He even has a fair share of liberals up in arms over it!
Americans of all income levels have long given generously, notably in the 1980s as income tax rates fell and the economy boomed. Over the last five decades, American giving overall has hardly deviated from 2% of personal income, according to the Tax Foundation. In an ideal world, the U.S. would eliminate most tax deductions, including the one for charity, in return for a simpler, flatter tax that would help create more wealth to give away. With his many new income-limited tax credits and deduction phase-outs, however, Mr. Obama is sprinting in the opposite direction.
Meanwhile, the White House may have underestimated the power of the liberal nonprofit lobby. The charity deduction cut is the only one of the President’s many tax increases that Democrats on Capitol Hill have publicly criticized. Politics hath no fury like a rich liberal scorned.
– The Charity Revolt: Liberals oppose a tax hike on rich donors (Rochester Conservative)
I guess they don’t mind tearing down the rich until they realize they’re taking the carpet right out from under their own feet?