Repeal Maine’s Tax Cap On Charitable Giving
During late night budget negotiations last year, the legislature instituted a cap on all itemized deductions including the charitable giving deduction. Since there were no corresponding reductions in the personal income tax rate, this cap resulted in a stealth tax increase that hurts both taxpayers and the non-for-profit sector.
More specifically, this cap applies to all itemized deductions, including the mortgage interest deduction and the charitable giving deduction, and was set at $27,500 for individuals or couples. Any taxpayer with combined itemized deductions above the $27,500 threshold will now be taxable, very likely at the highest marginal tax rate of 7.95 percent. Adding insult to injury, it was made retroactive to January 2, 2013.
Contact the Governor today and ask him to repeal Maine’s tax cap on charitable giving.