With Barack Obama’s tax plan looking like a reality, the wealthy should be prepared to foot a larger percentage of the tax bill. The wealthy aren’t happy because they feel like they already pay more than their fair share and, for some, they would just like to have some control over how their money is spent.
Why not eliminate the limits on tax deductions for charitable contributions? Currently, there are limits on giving based on income. If eliminated, we might see a huge influx of money pouring into charities.
Some might argue the wealthy would support projects like the Performing Arts Center, not directly helping the less fortunate. This is where government could step in and designate a list of acceptable charitable organizations. Certainly there would be much debate on what organizations should be on the approved list.
Others will argue that the wealthy would contribute more just to avoid paying taxes, and that could be the case. But if it helps those less fortunate, isn’t that what Obama’s plan is all about?
This might mean the government has fewer tax dollars, so they would have to do what many of us are already doing: live on less.