Fiscal Cliff: 41 Days and charities face uncertainty
MARSHALL COUNTY, Ky.- There are 41 days until we learn if America will fall off the Fiscal Cliff. One of the ways lawmakers might prevent that fall is by capping the tax breaks for charitable donations.
Currently people making more than $250,000 a year deduct 35% for their tax bill for every dollar they donate. President Obama has proposed capping that at 28%. Financial advisers stress the change would impact far fewer people than most think, however some charities think they're already seeing an impact.
"I think it may have to do with that fiscal cliff. I think everybody is going to consignment stores to get the most for their money," said Jason Hicks, manager of New To You in Benton, Ky. He said he thinks there's a misconception their donation won't pay off as much tax time.
Brent Housman, a financial adviser for Hilliard Lyons said he's been getting more calls than usual from clients wondering how the changes could impact them. Housman said he's been telling them all about the same thing.
"If there's a charity that's near and dear to your heart you've contributed to, go ahead and contribute," he said. He added any changes after the fiscal cliff wouldn't impact 2012 donations, anyway.