Legislation passed by the Senate on Tuesday night as part of the effort to avoid the dreaded “fiscal cliff” will limit the amount wealthy people can claim for charitable deductions on their taxes. The cap will apply only to individuals who make 250 thousand dollars or more and married couples making $300,000 or more, and It could save the government up to 50 billion dollars in tax breaks.
And now in response rich folks are apparently up in arms claiming that if they can’t deduct all of their charitable gifts they may not be so charitable in the future. Ari Fleischer, a former White House press secretary under President George W. Bush, tweeted: “This deal limits my deductions so I, & many others, will likely donate less in 2013.”
So why give if the giving can’t get you something good? That’s the exact opposite of what it means to be charitable isn’t it?
And According to Philanthropy News Digest, the new cap on tax deductions could potentially deter giving by anywhere from 0.4 percent to 2.3 percent –- up to $7 billion a year.
So 2013 may finally see revealed the answer to whether or not the trickle down theory of economics really is just economic theory or indeed economic fact.
Will the rich be truly generous enough to keep trickling on the poor…or will it all Depend?
