Obama Defends Push to Cut Tax Deductions for Charitable Gifts

Under Obama's proposal, the tax deduction for those with incomes over $250,000 -- which is now 35 cents for each dollar donated -- would be limited to 28 percent. That would return the rate to where it was during President Ronald Reagan's administration.

Obama said the change would help equalize the tax break for those donating to charity. "When I give $100, I'd get the same amount of deduction as when some -- a bus driver who's making $50,000 a year, or $40,000 a year -- give that same $100," he said, adding that the provision would affect about 1 percent of Americans.