Fox News
Expand
Browse All Video
Watch Live

You're watching...

Charities fear 'fiscal cliff' tax reform

Details

  • Description

    Jim Angle reports from Washington

  • Duration 2:31
  • Date

Clips

Also in this playlist...

Latest News

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

All over the US approaching its fiscal clip there are rumblings of big changes in some of those could impact charities.

Here's chief national correspondent Jim Angle.

Thanksgiving a time to relish one's blessings and the help the less fortunate but in the scramble for revenues to avoid the fiscal cliff.

Both the president's plan to raise taxes on the wealthy and the Republican willingness to raise revenues -- could end up hurting charities which rely on the kindness of people -- money.

High income people.

Tend to give very generous gifts.

They may give a million dollar contribution to our capital campaign at a local hospital or -- local art museum there's a small number of donors at a high end.

That account for a really big chunk of the charitable giving in this country.

And those are the folks who would be -- most impacted by this tax policy change.

In fact united way gets 15% of its total donations 500 million dollars a year from those who give 101000 dollars or more so charities worried that any kind of tax increase on the wealthy could cut into their donations that money from the wealthy would go to the government in taxes.

Instead of the charities as donations.

Yes they are taxed on that income and they're able to give all of adding content to charities and non profits back to their communities after all people have to pay their mortgages and other deductible expenses.

But they don't have to give to charities did you receive the tax incentive.

But the tax incentive is not.

Why most people do it just really impacts how much people are able to get Republicans argue against increases in taxes -- for fear will discourage job creation by hitting small business owners who file as individuals.

They prefer a limit on deductions perhaps a cap -- one taxpayer could claim such as 50000 dollars and take it for anything you want but you can't take more than 50000 in addition to rate increases on the wealthy President Obama also has his own plan on deductions.

Dilemma dumped -- 28%.

So in other words if you were in the 35 were the 33% tax bracket.

You could only deduct 28%.

All of the cost of -- charitable contributions to charities don't care what form it takes they're so worried about any tax plan is targeting the wealthy representatives of dozens of charities will converge on Washington on December 5.

To urge lawmakers to -- charities whatever they decide to do.

-- Dan thank you.

Load More