April 26, 2012
Posted by
Matt Gardner
Republicans in the House of Representatives recently proposed a blueprint for next year’s budget that cuts federal spending and redefines major safety net programs including food stamps and Medicaid.
The plan involves an overall strategy to redo the tax code, leaving just two personal tax rates of 10 and 25 percent, as well as a 25 percent corporate income tax. It will be paid for by ending or curtailing all deductions, credits, and loopholes. (http://www.nytimes.com/2012/04/14/us/politics/house-republicans-to-tackle-federal-budget.html).
Known as “The Path to Prosperity,” the document, which has to be approved by the Budget Committee, would impact myriad government assisted programs that help low income clients and the non-profit organizations that serve them.
Because it is not specific as to whether or not charitable deductions will be eliminated as tax breaks, a Budget Committee spokeswoman indicated that the House Ways and Means Committee would have to hold hearings to decide if charitable deduction tax incentive breaks would be chopped.
The plan offers guidelines for future legislation and discusses many spending goals rather than concentrating on specific cuts. Therefore, many feel that the plan would affect a rather broad spectrum of government programs that benefit non-profits and their low-income clients. Ultimately, this means there could be drastic cuts to these programs. (http://philanthropy.com/article/Republicans-Outline-Spending/131259/).