Obama's Budget Plan Calls for Cut in Charitable Tax Deduction

President Obama proposed on Monday to sharply limit the value of charitable tax breaks taken by wealthy people.

In his budget proposal for the fiscal 2012 year, he said he wants to limit itemized deductions to 28 percent for taxpayers in the highest brackets. This proposal is similar to an idea Mr. Obama put forward in last year's budget. The new fiscal year begins October 1.

The proposal would eventually reduce the value of itemized deductions for those in the top tax bracket by 30 percent.