Report: Charities warn 'cliff deal' could hurt donations
America's poor hurt by Washington's fix?
- Duration 9:34
- Date Jan 5, 2013
America's poor hurt by Washington's fix?
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This transcript is automatically generated
Forget the rich did this week's clip deal throw poor people over the -- Nonprofits now saying they're worried that folks will think twice about cutting a check to -- Because -- new deal -- tax rates for donations.
So did lawmakers is that they wanted to protect the Borges punish them and Staten.
Well everybody I am Cheryl Casone -- -- the cash NN.
-- -- -- Christmas week we have Wayne Rogers Jonathan Hoenig Tracy -- John late bill and also joining us this -- we have Margie Romero -- all of you HS how to start with you do you think that what happened with the deductions you can actually hurt.
More Americans out of video I think everything that happened with the cliff is going to hurt.
Lower income people in general but charitable contributions in particular -- because look the threshold.
On the limitation for itemized deductions was lowered that mean more people -- Are going to be able to are not going to be able to deduct things on their schedule.
A charitable contributions on your schedule a terrible contributions have been hurt because of the recession to begin with people -- pulled back.
And now look I'd get were terrible nation I'd get -- Philanthropic but at the end of the bad.
You kind of looking for that deduction and if you're not -- -- it you might not be writing that -- -- at the end of today.
You know -- the former white house Press Secretary Ari Fleischer -- -- said.
You know what I'm not gonna -- as much money to charity in 2012 because of what happened with the fiscal -- deal.
He's -- -- probably many -- -- are gonna come out and say I'm not a -- a medical back.
I think what it's ignored in all of this is the result of charitable giving.
People who LE -- -- and there are -- oriented people who wanna give people who feel that they have an obligation to the society to get.
Are not encouraged by this and the results of what charities do is a substitute for having the government do -- and for God's sake we all know that a private.
Individual private organization that has devoted to charity is a much more efficient way to give money.
To the people who are disadvantages up for a sick -- quite -- -- the federal government.
-- -- -- that's the real problem with this is that it cuts out.
Those people who would want to do some who do it best.
John -- wanna give you figure here and this is coming from Atlanta -- news digest they say that they believe in 2013.
There's going to be seven billion dollars seven billion dollars less.
And charitable donations going to these nonprofits because of the -- plea deal -- -- that's too big of a number two small number.
I I think it's bad numbers actually probably Mormon there's no question in my mind that that that the so called deal for the fiscal cliff.
It hurts to pour I don't think it -- the war because they can -- of charitable deductions however I think it hurt the war because they raised taxes seven -- -- -- household.
Are gonna see their tax bill go walk now especially the rich are gonna get hit.
But it means that ever -- have not only less money to give.
But also less money to invest I don't think people give to charity because -- want a tax deduction.
I think they get injured because they get something out of -- and -- -- taxes hurts the rich but hurts every one people who would invest to create more wealth.
Or people who would give it away to help those in need Margie do you think that this is going to be an unintended consequence.
Of the fiscal -- deal.
I don't thanks if you think your chair of first and middle class voters and middle class people are actually more likely to give up larger share of their -- come.
To charity and that's not gonna change as a result of -- it's is tweak with it cap.
-- for higher income folks.
Also we're seeing strong jobs numbers on jobs numbers -- that happened during the month of all this fiscal cliff negotiation almost three years of straight private sector job growth.
And as we move out of this recession as we had economic job growth that's gonna give more people more money it to get to cherry and that's what we're gonna see that bounced back.
More than what some nonprofit.
Outlets have been calling really -- hair cut in.
-- that the cap and and remember what the alternatives were to the alternative was.
On to extend the bush tax cuts which in Disney arguably really their residences.
Economic crisis before -- come to see it -- have a sequester cut that we table now for couple months that went -- cut food for hungry children of those people that would have needed a lot.
At the same time they're the same time John Layfield many nonprofits were coming out of this in 2000 and wild.
During the fiscal -- debate if you will but national dialogue and -- and we are very concerned about this potential piece of the tax -- and I want to add here.
This is for people that make over 250 couples at 300.
So to lower threshold than the overall grand deal that we ended up wet.
Yeah hey stop without the ridiculous talking points -- we we've had two years of those these bush tax cuts and they're so bad here real vulnerable eleven years.
Why did you extend -- Permanently I mean that that that's just it's it's ridiculous to blame those tax cuts.
For the deficit and then extend will permanently except for just on a small margin of operational martyrs.
We're talking about charitable deductions here we have seven billion have a out of about 300 billion that are given.
Totally nationwide about turn seventeen they are from private individuals.
I don't think we'll see a huge precipitous drop in and donations -- people want to help.
I was sitting at Robin and by the British during the world and run financial process salt tens of millions of dollars given by these evil guys like John and owning these hedge fund manager they finance guys -- Par 41 of the greatest journeys were up again we're gonna give a -- Americans want.
Yeah well I don't think it's -- -- Tracy that he starts a mile lap cat on a visit them are above it makes you -- yeah -- it it makes me feel good because you know here's the thing like.
-- the fact that the middle class -- a higher percentage of their income is irrelevant because 1%.
Of the guy that makes two million dollars is a much bigger charitable deduction contribution and the middle class that's why it is important.
Bet than the rich keep giving.
And the other thing is still the more you tax these people bit less the going to be inclined to give any money out -- gonna want to report and send it overseas could this country is killing them.
And so as a result everyone is going to get -- certain you know the other thing to people like country you not charities like united way have a payroll deduction.
Have you seen your payroll check this week.
I did when big difference right you know -- the first thing that might come might be that -- Americans are.
All sing that change on their checks this week Wayne at the same time not think back to that point that it's not gonna matter that -- you -- military about sharing -- really good person you want to help your fellow man.
The -- will still give money to charity.
Now of course you well but as I said I think you you people -- these don't realize what the results of it it's just not just.
What do you give it or you don't give it but the result of it did did that people who are in charitable.
The in the business of charity if you will.
Doing much better job than the federal government does and -- that substitute is a much better think.
An older respective whether it be it would -- point is good is well made.
The amount of numbers of people in the middle class who are giving may be great -- but the amount of money.
That is given per person.
At the top of it if that top 30% of the top 3% out of that 35% of both of those top 3% of the people who give most of the money to charities and if you hurt them and -- definitely gonna cut back grander and -- -- 300 billion.
I wanted to make the point that it you know helps the poor more than anything is -- the money that's given to them but the money that's invested to create wealth that helps not just before but to help the country writ -- I mean I.
And -- think there should be no deduction for charity deductions for charity deductions for green hole is no deductions for housing.
And with a -- deduction is only created in 1917 it's -- -- -- this is integral part of our republic.
Get rid of charities let people keep more of their money and to -- Portland then decides who deserving who's not.
I government's evidence -- it was -- charity who's not job done Jonathan the income tax didn't exist until 1913 some 1913 to 1917 had -- -- a -- but again.
And now he knows hey -- Xena is true 65%.
You know a case has been I listened to -- of the US households clustered in the dead.
Give money to charities but I think.
Aren't aren't watchers point about giving us two that the nonprofits point that were concerned about this we don't know yet how this is going to be.
Change and it may go back to Washington in -- the day that they took away.
Money from people that really needed it.
Well I think there he thinks it's a look at one is oh but how what the people who are at the bottom the neediest among us and what what kind of -- at economic.
Conditions are we creating for them.
And if we are.
Extending -- income tax credit for those folks if we are preventing -- cuts to food support for those folks if we are improving income inequality so folks don't feel that they can it can never really catch up.
Then those people who are gonna be less like an extending unemployment benefits those -- going to be bill and less likely to look to charities to get help so I think it's an that's an important.
Huge party -- Down -- the total sample I think you had a that they don't like Hilton.
When he did the total separate issue -- income equality it has gotten greater over the last decade -- -- greater under Obama's got right under bush all the policies of the government favor big businesses.
That's one of the reasons that has not changed whatsoever we're talking about charities here and places that have a huge homicide rate like like Chicago or -- is.
-- -- not -- on the be on the ball American Freedom Foundation.
What you were talking about is -- running things much better than the government can't.
And -- the -- the government would want -- people that the government can't service -- it coming up ever --