April 2nd, 2009 - Washington, D.C. - Senator John Thune applauded today's 94 to 3 vote on his amendment to the Democrat budget that would protect the full federal income tax deduction for charitable giving. President Obama's budget framework had proposed reducing the deduction, which would result in less charitable giving nationwide.
"There are many in South Dakota and across the nation who need a helping hand, especially in these tough times," said Thune. "The value of private charities and nonprofits in meeting the needs of the less fortunate cannot be overstated, and the Senate did the right thing in encouraging Americans to be generous with charitable organizations in this time of need.
Studies estimate that the reduction of the charitable tax deduction proposed by the President would reduce charitable donations by as much as $8 to $16 billion annually.
Last week, Senator Thune offered an amendment to the National Service Bill that would have expressed the "Sense of the Senate" that the full charitable contribution deduction should be preserved in the current form. Unfortunately, the amendment was defeated by one vote. Senator Thune's continued efforts on this issue are widely supported by charitable organizations and nonprofits who view a reduction in the charitable giving deduction as a major impediment to future donations.
The Thune amendment to the Senate budget proposal would create a budget point of order that would protect against any future attempt to reduce the current Federal income tax deduction for charitable donations. A budget point of order can only be waived with a three-fifths majority vote in the Senate. Effectively, this would protect charitable giving by ensuring that organizations that provide important religious, educational, cultural, health care, and environmental services are not negatively impacted by those who seek to reduce the Federal income tax deduction for charitable donations.
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