Hatch Urges Obama to Drop Plan to Cap Charitable Deductions

Limiting tax deductions for charitable contributions would undermine churches and other nonprofit community groups, Utah Senator Orrin Hatch said at a Senate Finance Committee hearing today.

Hatch urged the Obama administration to back away from a proposal to cap at 28 percent itemized deductions, including the one for charitable contributions, for individuals earning more than $200,000 a year and married couples earning more than $250,000. Such deductions now are capped at the top marginal tax rate of 35 percent.