With lawmakers still considering options for financing health care reform, ASAE joined a coalition of diverse nonprofit organizations this week in opposing a proposal from the Obama administration to impose new limits on charitable tax deductions.
The Senate Finance Committee last week released a wide range of policy options for funding comprehensive reform of America’s health care system, including potential savings from within the health care system, modifications of current health care tax expenditures, and non-health-related tax provisions proposed by the Obama administration in its FY10 budget proposals.
One of the administration’s key proposals to fund health care reform would reduce the tax deduction for charitable contributions from 35 percent to 28 percent for families earning more than $250,000. The administration has estimated the proposal could raise about $318 billion over 10 years.
“Health care reform is something we all want to see, but stifling a vital sector whose sole purpose is helping those in need is not an appropriate method of financing these reforms,” said the May 26 coalition letter to Senate Finance. “In light of these challenging economic times, now is not the time for Congress to be providing disincentives to giving.”
ASAE signed the letter along with the Association of Fundraising Professionals, the DMA Nonprofit Federation, the Alliance of Nonprofit Mailers and the National Catholic Development Conference.
You can view the letter here.
Senate Finance Committee Chairman Max Baucus (D-MT) has said he would prefer to pay for reform by finding money within the health care system, but he included the non-health-related options proposed by the White House “in deference to the president.”
An Office of Management and Budget (OMB) official this week said the administration still considers the proposal to lower the tax deduction for charitable contributions as the best option for change without undermining incentives for employers to provide health insurance for workers, according to the Bureau of National Affairs (BNA).
Chris Vest
Director, Public Policy
ASAE
