Cap on Charitable Giving Deductions Could Hurt Nonprofits

The Obama administration’s budget plan asks Congress to raise taxes on the wealthy to help stem the flood of red ink. One of the strategies to increase tax revenue is a cap on the rate that high-income taxpayers can use to claim charitable deductions. This is part of a plan to finance changes to the country’s health-care system. That news is sending shudders through the nonprofit and philanthropic world. Joining us this morning is Peter Panepento, a web editor with the Chronicle of Philanthropy, and Matthew Bishop from The Economist and author of Philanthrocapitalism: How the Rich Can Save the World joins us from Barcelona.