President Bush plan for tax breaks for charitable giving is yielding to a strategy of avoiding tax hikes to offset the breaks, USA Today reported July 5.
Bush “is not in the mood” to raise any taxes during the economic slump, said Mitch Daniels, the White House budget director. “We’re well aware that reality might dictate some delay in pursuing some of these measures.”
Proposed cuts, likely to be delayed, would:
Let taxpayers who don’t itemize claim a deduction for charitable giving.
Raise the amount of charity that corporations could deduct from business taxes.
Permit withdrawals without penalties from individual retirement accounts for charity.
Bush’s tax breaks might have to wait until a hoped-for recovery next year that would boost the surplus, Senate aides said.
For full story, go to USA Today.