Connecticut Commentary: Red Notes from a Blue State

Of the many groups and individuals who find themselves damaged by the tax hikes changes announced by President Obama, charitable organizations are among the foremost losers. Nevertheless, the activists’ objective is to get the foundations to ignore the intent of their founders and do “social justice.” Blows are being leveled at the charities. To begin with, tax deductions for contributions are being limited. Formerly (and still, for the moment) contributors to charities could deduct $396 from their income tax for each $1000 contribution. Under Obama’s redistribution plan, contributors will be able to deduct only $280. This limitation will discourage some contributions (one estimate is by 40%) in normal times; and at a time of severely falling stock prices, the impact is likely to make a significant difference to charities’ survival. The restriction on contributions applies to recipients of income of $250,000 (gross?) a year. Small contributors, the “non wealthy,” earning less, ar...