President Barack Obama proposes to pay for his $447 billion jobs bill mainly by limiting tax deductions for wealthy Americans. Unfortunately, if enacted, this policy will likely dampen charitable giving and further shift perceived responsibility for social welfare from individual donors to the state. The President’s plan calls for lowering the rate at which wealthy taxpayers can take itemized deductions—from the current rate of 35 percent down to 28 percent, beginning in 2013. The change would affect individuals making more than $200,000 (and families making more than $250,000) per year. …
“But don’t expect anyone in Congress to admit that taxpayers are paying around $6,000 to provide a $4,500 rebate for a foreigner or illegal immigrant to buy a new car. “ That’s Lurita Doan. She argues: “First, DOT created and staffed an entirely new organization with three divisions to administer the clunkers program. Second, the funding was allocated to cover extensive Help Desk telephonic support, promotional materials, mailers, travel, Web site development and maintenance. Plus, extensive administrative and managerial staffing was also funded. There is staffing to manage the contracts, …
