It’s no secret that I am a partial Blue Dog Democrat, so all of this spending spree mentality is driving me crazy, just as it did when Bush did it.
I am not sure about tax hikes, but when I heard that Barack Obama was going to cap the amount a person can deduct for charitable contributions, I immediately imagined plenty of charities going under.
You see, many wealthy people practice what is called “Doing Well By Doing Good“. Without the benefit of deductions, their charitable contributions could easily tank. Then too, people should be able to decide who they give their money to and not be penalized just because they happen to prefer do donate to The American Cancer Society instead allowing the government to decide where their contributions go. Besides, they like to take their own credit for their own generosity.
The Republicans have rightfully complained about this idea, but since they already proved their own fiscal irresponsibility and partisanship– nobody from the other side is listening to them. After all, in a congress comprised of spoiled children on the playground during recess, “Gotcha last” is the game of choice, followed by “It’s my bat and ball and we will play my way”.
Fortunately, several Democrats agree so the issue remains alive.
WASHINGTON — President Barack Obama is meeting strong Democratic Party resistance to his proposal to reduce tax deductions enjoyed by upper-income Americans and could be forced to drop or modify the idea.
Mr. Obama in his budget blueprint last week proposed a cap on itemized deductions for mortgage interest and charitable donations to help pay for his health-care overhaul. The plan would cost wealthier taxpayers about $318 billion in new taxes over 10 years, according to government estimates.
But after objections from Democratic lawmakers, Treasury Secretary Timothy Geithner appeared to suggest at one point Wednesday that the administration was willing to consider dropping or modifying the proposal.
Finally, a Democrat asks a logical question:
Sen. Max Baucus (D., Mont.), the Senate’s top tax writer as chairman of the Finance Committee, told Mr. Geithner he was especially concerned about paying for expanded health coverage with a deductions curb that “has nothing to do with health care.” He added: “I’m wondering about the viability of that provision.”
“I’d like to think that people give out of the goodness of their heart, but that tax deduction helps to loosen up the heartstrings,” Nevada Democratic Rep. Shelley Berkley said Tuesday during a House Ways and Means Committee hearing.
Tim Geithner, after having mentally calculated votes and smelling a defeat said:
“We recognize there are other ways to do this,” Mr. Geithner responded during a hearing Wednesday. “We are willing to listen to all ideas that meet these broad principles.”