Tax-Policy Change Is Proposed for Charities

WASHINGTON, MARCH 25, 2009, The Wall Street Journal — A handful of senators introduced a tax-policy change Tuesday that they say would encourage charitable foundations to increase their giving.

Democratic Sens. Charles Schumer of New York and Carl Levin and Debbie Stabenow of Michigan introduced a bill that would put a single tax rate on foundations' investment income. Current policy puts different tax rates on the investment income based on how much money foundations distribute to charity over periods of time.