New Debt Plan Calls for 'Reform' of Charitable Deduction
A proposal to reduce the federal debt unveiled on Tuesday calls for changes to the charitable deduction as part of an overall strategy to overhaul the tax code.
An executive summary of the plan—drawn up by a bipartisan group of senators dubbed the “Gang of Six” and praised by President Obama—does not spell out what those changes might be. However, it says its overall strategy is “consistent” with recommendations that the president’s debt commission issued last year.
That plan called for replacing the charitable deduction with a 12-percent tax credit.