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 Charity Begins With Government - White House Press Briefing by OMB Director Peter Orszag 2/26/09 — Thursday, February 26, 2009 —  Q Peter, for those who are making more than $250,000, I understand that they're going to be limited in terms of the itemized deductions for their -- filing their taxes, including charitable contributions. Considering that at least one-third of charitable organizations last year took a real nosedive, and you have some big names -- the Salvation Army, Goodwill, American Red Cross -- how do you stop the bleeding when it comes to those charitable groups, considering that you're now taking away an incentive to actually contribute?DIRECTOR ORSZAG: Well, let me be very clear. In the recovery act, the President supported -- and contained in the recovery act, there's $100 million to support non-profits and charities as we get through this period of economic difficulty. In addition, the recovery itself will provide a strong boost not only to charities, but to the overall economy and to the people who contribute to charities. But I think the real question as you look out over time is the following: When a middle-income family makes a $1,000 contribution to a charity, they save $150 in their taxes. When Bill Gates makes that same contribution to that same charity, he saves $3,500 in his taxes. All we're saying is we think Bill Gates should get a $2,800 tax break -- still a lot larger than a middle-income family -- rather than the $3,500 one. Q And to the larger point, is there a concern that you have people -- that the wealthier folks who are providing the jobs, who are spending the money, and also contributing to charitable organizations -- that in some ways they are going to start saving, that they’re not going to give, and that they're going to undermine the success or the progress that you're making? DIRECTOR ORSZAG: I really don't think so. I think what drives charitable contributions is overall economic growth, is other motivations. It's -- typically, again, it's not done for a tax incentive, but rather out of benevolence or some other related desire. And furthermore, if you really wanted to get wonky, if you look at all the provisions in the budget, even from a narrow economic perspective, I think you'll see that there's roughly a wash in terms of the financial incentives for giving to charitable contributions -- to charities. Charity | Economy | Obama Administration | Office of Management and Budget | Peter Orszag | Press Briefing | White House Press Corps Labels: Charity, Economy, Obama Administration, Office of Management and Budget, Peter Orszag, Press Briefing, White House Press Corps >> Full Story
Posted by White House Press Corps @ 7:44:00 PM
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