Limiting tax deductions for major charitable gifts would be a way to raise revenue by targeting wealthier taxpayers. A major criticism of Speaker Paul Ryan’s (R-Wis.) border-adjustment tax proposal is that it would hit middle- and low-income Americans by increasing the costs of consumer products.
Capping charitable deductions would fit with the secretary’s declaration last year that “there would be no absolute tax cut for the upper class.”
A request for comment submitted to the Treasury Department’s press office on Tuesday was not answered.
Limiting tax incentives for charitable giving would trigger a lobbying frenzy against such a plan. It’s also likely to stir opposition from conservatives who would like to see groups funded by private donations assume more responsibility from the government to provide a social safety net.
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