Cap on Deductions Won’t Hurt My Giving “by a Penny”: Buffett
With “fiscal cliff” discussions going on in Washington, non-profits are already in combat mode over the potential for a cap or limit on charitable tax deductions.
But America’s Philanthropist-in-Chief (or Vice Philanthropist, next to Gates) says that doing away with the charitable deduction altogether wouldn’t change his giving – not even by a penny.
“If there were no deduction allowed it would not change my charitable giving a penny,” Buffett said on CNBC’s Squawk Box this morning. (Read more: Would Fiscal Cliff Keep Rich From Giving to Charity?)
Of course, Buffett’s finances, and his use of deductions, is different from most of the rich – and even the super-rich. Buffett said that because he gives away billions a year, he has a $ 10 billion “charitable deduction carry forward” that he can never use.
“I don’t get the deduction on virtually everything I give away,” he said. “I get to take a deduction for less than one percent of the value of what I give away every year.”
He said that the same is true “for a number of wealthy people, but there are some other people that it’s not true of.” (Read more: The Hitch in Buffett’s Tax Plan)
In sum, everyday millionaires and even billionaires may reduce their giving with the charitable deduction limit. But at least Buffett will keep giving – and that’s no small thing.
-By CNBC’s Robert Frank
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