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Abstract: 

The Congressional Budget Office (CBO) has released recommendations detailing 11 possible options for reforming the income tax charitable deduction to respond to concerns raised about the cost, equity, and efficiency of the deduction. One set of policy options would keep the current itemized deduction for charitable contributions but allow only contributions in excess of a floor to be deducted. Other options keep the current itemized deduction for charitable contributions but allow only contributions in excess of a floor to be deducted or convert the current deduction into a nonrefundable tax credit or replace the current deduction with a tax credit equal to 15 percent of a taxpayer’s donations.

Keywords: Joint Committee on Taxation (JCT); tax subsidies

Affiliations:  1: Attorney at Law.