Obama Plan Would Reduce Charitable Deduction for Some Wealthy Donors

That would reduce by as much as 20 percent the amount wealthy taxpayers could reduce their federal tax payments for charitable donations. Under the current system, taxpayers who are in the 33 percent or 35 percent tax brackets use that rate to claim deductions.

The proposal would raise $318-billion over 10 years, the plan says. That money would help pay for a 10-year $630-billion reserve fund designed to help make health care more affordable and available.