Nonprofits fret over Obama’s plan to tax wealthy

Nonprofits are raising concerns over a tax provision in President Obama's budget plan that they say would lead to a sharp drop in charitable donations.

Set to take effect in 2011, the provision would reduce the charitable tax deduction for households earning $250,000 in gross income annually. Under the current system, those in the 35 percent tax bracket receive a 35 percent deduction on charitable contributions. Under Obama’s proposal, the deduction would be reduced to 28 percent. Read more here.