Even though we have just enjoyed Thanksgiving, Christmas is just around the corner, and the idea that Congress might actually reform taxes or make other significant fiscal progress seems entirely speculative, the federal tax deduction for charitable giving is not in a safe harbor. Rhett Butler, coordinator of the Faith & Giving Coalition, notes several recent press reports hinting that Republicans in the House continue to contemplate restrictions on this “tax break” or “tax expenditure” as one way to deal with the federal government’s fiscal black hole. Restrictions on the deduction have also been advocated by the President, outside commissions seeking some grand bargain to produce a decline in the huge federal deficit, and some Senate Democrats and Republicans. There are positive signs, too, but no reason to be complacent.

The charitable contribution deduction only “benefits” taxpayers who give away money to help others and it fosters civil society action that reduces the need for government expenditures . . . But it remains an attractive target to legislators seeking additional government revenue either to grow the government or to shrink the national debt.

Follow the story at the Alliance for Charitable Reform.