As President Barack Obama and Congress work to solve the country's budget problems before the fiscal cliff, they are considering caps or cuts to the charitable tax deduction. The tax benefit has been around for 100 years, and allows individuals to receive a tax break for a percentage of their donations to charity in a given year.
Nonprofits argue that the tax break is essential in allowing them to maintain their services, because people are encouraged to give when they receive the tax break as a result. They say eliminating the tax benefit will lead to a drop in donations, which will jeopardize the services nonprofits are able to provide. Especially during the economy's slow recovery from the recession and other government cutbacks, they say people are in more need than ever of programs supported by charitable dollars.
Rod will take your calls on eliminating charitable deductions at 5:35pm
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