Charity and the Grand Deficit Bargain

The White House will continue to push for such a defiict bargain to include new limits on the value of the charitable tax deduction. Indeed, new Treasury Secretary Jack Lew testified, during his Senate confirmation hearings, that capping charitable deductions at 28 percent of their value, even as the top marginal income tax rate rises to 39.6 percent, should be part of “an even-handed approach” to tax reform.