Obama Defends Push to Cut Tax Deductions for Charitable Gifts

In a move to create a new incentive for charitable giving, Democratic Sens. Charles E. Schumer (N.Y.), Carl M. Levin (Mich.) and Debbie Stabenow (Mich.) said yesterday that they have introduced legislation that would simplify the tax code to spur private foundations to give more money to charities. The bill would replace the current two-tiered system for taxing foundations on their investment income with a single tax rate, in part because lawmakers say the current system punishes foundations for years in which they give away more than usual.