The Wall Street Journal is reporting that shrinking the amount of charitable contributions New Yorkers earning more than $10 million can deduct from there state taxes is gaining support from Gov. David Paterson and lawmakers:
Under the plan, the amount those high earners could be allowed to deduct may drop to as little as 25% of their giving. The current limit is 50%.
Depending on where the limit is set, lawmakers estimated the state could generate $60 million to $100 million from an estimated 3,500 taxpayers, including Mayor Michael Bloomberg, who donated $254 million in 2009.
“We haven’t seen the details, but it sounds like it would really hurt the charities and nonprofits that people rely on now more than ever,” said Stu Loeser, a spokesman for Mr. Bloomberg.
The tax would be the third significant hike targeted at wealthy residents that Albany has passed during the Paterson administration.