THURSDAY
February 1, 2001
volume 12, no. 32

Bush Proposes Increased Tax Deductions for Faith-Based Giving

    WASHINGTON, DC, Jan. 31, 01 (CWNews.com) - President George W. Bush on Tuesday proposed increasing tax deductions for gifts to religious groups as part of his plan to increase the role of faith-based organizations in providing social services.

    Bush, visiting an inner-city Washington school, outlined his proposal for making sure religious groups have equal access to federal programs as they work with social problems like alcoholism, homelessness, poverty, and drug abuse. "There are so many people in need," Bush said. "The good news about America is there are so many willing to serve. It's the great strength of our nation."

    Bush proposed extending to all taxpayers the federal charitable tax deduction, which allows people who itemize on their taxes to deduct money given to charity from their taxable income. His plan would allow the 80 million people who take the standard deduction, and do not itemize, to deduct for their donations to charity. Bush believes that may boost charitable giving by billions of dollars.

    He also proposed raising the cap on corporate charitable deductions. Corporations would be permitted charitable donations until their value exceeds 15 percent of the company's taxable income, instead of the 10 percent under current law. He would also create a "compassion capital fund," that would match private giving with federal dollars to pay for increased technical assistance to help small community and faith-based charities increase their capacity, and provide start-up capital to help smaller groups expand.


February 1, 2001
volume 12, no. 32
USA News
www.DailyCatholic.org
Return to Today's Issue