Trump eyes cap on charitable deductions

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.

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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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