RICHMOND, VA (WWBT) –Today we take a look at a claim made by House Majority Leader Eric Cantor on his blog. The Cantor blog posted titled "President Obama Taxes Soup Kitchens" accuses President Obama of demanding a tax on donations to soup kitchens and other charities that help people desperately in need.
The blog post claims that the president's proposal to adjust tax deductions for charitable contribution would impact 40% of all donations to charity.
Is that true? According to writers of Politifact Virginia Congressman Cantor's claim is "mostly false."
The problem is not necessarily with the math it is with the language. The Obama proposal will roll back charitable donations for people making over $200,000 a year, only 2% of the population, but the group that contributes just about 40% to charity. That could have direct impact on places like soup kitchens.
But a "tax" is different than a deduction that comes from a donation. Soup kitchens, by in large, are non-profit enterprises and therefore are not required to pay any federal tax. Under this new proposal they still aren't.
While there is an argument to be made about how soup kitchens may be impacted by this hit to tax deductions, according to Warren Fiske of the Times Dispatch it is not a tax on soup kitchens.
"It is possible that the loss of deduction could lead to a dis-incentive for charitable contributions, but it's not clear if it would or not, but again, it is not at all clear that this would result in great loss for soup kitchens or for any other charity that you could find," Fiske said.