Obama – Cut deductions for the weathly

Today President Obama restated his position that one of the options he favors to help pay for Health Care Reform is to cut the charitable contributions for the wealthy. He used the example of why should he be able to deduct the amount he gives to the church. How many churches will disappear, how many non-profit organizations will collapse when their primary means of support is from charitable contributions. The so called “rich” contribute to these non-profit organizations not only because they believe in what they are supporting but because they do get that tax deductions. If Obama changes the tax code in order to generate more income to the IRS to pay for health care, who is going to pick up the pieces or take over the work now being done by non-profit charitable organizations.

The IRS has a searchable database:

Publication 78, Cumulative List of Organizations described in Section 170(c) of the Internal Revenue Code of 1986, is a list of organizations eligible to receive tax-deductible charitable contributions. This online version is offered to help you conduct a more efficient search of these organizations.

You can search on this page using a single word such as “children” …. they have hundreds of listing just for children to organizations that are eligible to receive Tax-deductions for charitable contributions. Here is the site:

http://www.irs.gov/app/pub-78/

Obama wants to rely on the rich paying all these new taxes to support government programs but does any one question what happens when we run out or have declining numbers of the Rich?

Governor Arnold Schwarzenegger stated in an interview with Greta Van Susteren on FOXNews, that one of the major financial disasters the state is facing has come from to much reliance from income tax revenues, especially from the rich. That many of the rich have moved out of CA or had a loss/decline in their income so this has caused massive reductions on the revenue received in state taxes. He said that expectations on having taxes from the rich being a reliable source of continuing income for running government is unrealistic.