What does President Obama have against charity?
There can be no doubt now that the Obama White House believes that one important way to improve the economy is for Americans to give less to charity. In the collection of proposals he calls his jobs bill, the president has—for the fourth time in his administration—proposed to limit the value of the charitable tax deduction, cutting it back for those earning more than $250,000 to just 28% of a donation, from 35%. . .
In a study released Wednesday, the University of Indiana’s Center on Philanthropy estimates that in 2013—when both higher tax rates and the decreased charitable deduction would take effect—overall philanthropy would decline by 1.4%, or $2.43 billion. . . The Indiana estimate echoes similar findings on the same subject by the Congressional Research Service in 2010.
It would be bad enough to think the government can spend money more effectively than private charities, but Obama’s plan is worse than that:
Much more worrisome are the assumptions of the latest tax proposal and a White House initiative called the Social Innovation Fund. While the former assumes that the money diverted from charity can be put to better use by government, the latter adds the notion that government funds should themselves be directed to nonprofits, some previously independent of government. The other assumption is that private philanthropy should follow along, matching government dollars. In combination, this amounts to what can be called the Solyndra-ization of philanthropy.
It’s not enough for the Democrats to divert hundreds of billions of dollars to their crony capitalists, they want to divert charitable giving to crony non-profits as well.