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The Association of Fundraising Professionals (AFP) today circulated a letter urging the Senate Finance Committee and the Members of Congress who were members of the Joint Select Committee on Deficit Reduction to preserve the current charitable deduction during future tax discussions.
AFP, the chair of a coalition of nonprofit organizations and umbrella groups, anticipates that Congress will continue to pursue ways to reduce the deficit and implement tax reforms in 2012, even though the Join Select Committee on Deficit Reduction was unable to agree upon any recommendations.
During the joint committee’s work, it was reported that Republicans were open to eliminating certain tax deductions, including charitable deductions, for the wealthy in exchange for a permanent reduction of the marginal tax rates set under President George W. Bush. Simultaneously, the Democrats appeared open to capping the tax reduction that high income taxpayers can get from tax expenditures (such as itemized deductions like the charitable deduction) based upon a percentage of adjusted gross income.
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