Two senior tax writers are lobbying to ensure that the charitable deduction remains intact in any tax overhaul.
Sens. John ThuneJohn ThuneOvernight Tech: Last-ditch effort to get Dem FCC commish confirmed | Facebook's Sandberg on fake news | Microsoft completes LinkedIn deal FCC chairman willing to resign to get colleague confirmed Overnight Tech: AT&T, Time Warner CEOs defend merger before Congress | More tech execs join Trump team | Republican details path to undoing net neutrality MORE (R-S.D.) and Ron WydenRon WydenSenate sends annual defense bill to Obama's desk Senate fight over miners' heathcare boils over Budowsky: Did Putin elect Trump? MORE (D-Ore.) say in a new letter that deduction's full value should be kept, to reiterate the government's "long-standing dedication to encouraging private acts of charity and compassion."
"The charitable deduction is unique. It is the only provision that encourages taxpayers to give away a portion of their income for the benefit of others," Thune and Wyden wrote to Senate Finance Committee Chairman Max BaucusMax BaucusBusiness groups express support for Branstad nomination The mysterious sealed opioid report fuels speculation Lobbying World MORE (D-Mont.) and the panel's ranking member, Sen. Orrin HatchOrrin HatchOvernight Finance: House passes spending bill as shutdown looms | Fate in Senate unclear | Labor groups pan Trump's Labor pick Mnuchin, Price meet with GOP senators Overnight Finance: Trump blasts Carrier's union leader | What's in the spending bill | Jamie Dimon gets perch for Trump era | AT&T, Time Warner execs grilled MORE (R-Utah).
Wyden is in line to take over for Baucus, who is scheduled to retire at the end of 2014, as the top Democrat on the powerful Finance panel. Thune is currently a member of Senate GOP leadership.
Charitable groups have long made a similar argument for leaving the deduction alone in tax reform or deficit reduction efforts. Scrapping the tax break, those groups say, would put a dent in their services, putting more strain on state and local governments that would be forced to make up the difference.
President Obama has long called for capping itemized deductions at 28 percent, instead of the top individual rate, currently 39.6 percent.
The senators' letter also underscores the challenges of tax reform, namely that many of the most expensive tax breaks are both popular and have big-name defenders. The Congressional Budget Office has estimated that the charitable deduction will cost $568 billion over a decade.