President Obama’s Nobel prize illustrates the folly of one of the president’s proposed tax “reforms”. It seems Obama wants to limit charitable deductions so that they apply only at the 28% tax rate even if you’re in the 35% tax rate. If Obama’s policy were already in effect, he would stand to lose 7% in taxes by giving the prize money to charity. That’s $98,000.
Why does the president want to discourage charitable giving anyway? What public policy justification could possibly be cited? Is it because private charities lessen the need for government largesse?
(Via Instapundit.)
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