Will nonprofits feel the pinch under Republican fiscal plan?
| WASHINGTON
笔谤别蝉颈诲别苍迟听Barack Obama聽warned on Tuesday that Republican tax proposals could threaten the collapse of hospitals and universities benefiting from charitable deductions.
"There's been a lot of talk that somehow we can raise $800 billion or $1 trillion worth of revenue just by closing loopholes and deductions," Obama said in a Bloomberg TV interview. "The only way to do that would be if you completely eliminated, for example, charitable deductions."
Senior administration officials met with representatives of the largest charities in the country at the聽White House聽Tuesday to press their case, a聽White House聽official said.
The president and congressional Republicans are clashing over how to prevent so-called fiscal cliff year-end tax increases and spending cuts that analysts say could throw the economy into a recession. The two sides are deadlocked over Obama's insistence that tax cuts enacted under former 笔谤别蝉颈诲别苍迟听George W. Bush聽expire for the wealthiest 2 percent of Americans.
Republicans oppose any increase in tax rates, but have said they are willing to agree to $800 billion in additional revenues to help ease a massive budget deficit that both sides want to see tamed.
贬辞飞别惫别谤,听House of Representatives听厂辫别补办别谤听John Boehner's proposal would lower tax rates, not raise them, and rely instead on closing loopholes and eliminating deductions.
Obama said on Tuesday he believes that no more than $300 billion to $400 billion in additional revenue can be raised through closing loopholes and cutting deductions.
The president and his aides argued that raising revenues solely by closing loopholes and eliminating deductions could cut deeply into programs that benefit the middle class, such as the mortgage interest tax deduction, and could have a devastating impact on organizations that depend on donations.
"If you eliminated charitable deductions, that means every hospital and university and not-for-profit agency across the country would suddenly find themselves on the verge of collapse," Obama said.
White House聽Chief of Staff聽Jack Lew, senior adviser Valerie Jarrett,聽Domestic Policy Council听顿颈谤别肠迟辞谤听Cecilia Munoz聽and聽National Economic Council听顿颈谤别肠迟辞谤听Gene Sperling聽met with non-profit and charity leaders, the official said.
The attendees included聽American Red Cross聽chief executive聽Gail McGovern, United Way Worldwide U.S. President Stacey Stewart, and Catholic Charities USA President the Reverend Larry Snyder. Together, those three organizations draw more than $6 billion in contributions annually.
