February 14, 2011
For: Immediate Release

Contact: Maury Litwack, 202-513-6488

Orthodox Union Praises President Obama’s Budgetary Vision, But Expresses Concern Over Potential Harm to Charities

The Union of Orthodox Jewish Congregations of America (Orthodox Union), the nation’s largest Orthodox umbrella organization, released the following statement today in response to the President Obama’s budget proposal:

The Orthodox Union commends President Obama for his efforts to extend earned income tax credit provisions and more favorable student loan deductions.

The Orthodox Union is pleased to learn that the President has placed a premium on America’s education system, with major increases to early childhood programs and “Race to The Top” funding to spur education reform. But, the Orthodox Union noted, broad education reform and improvement must include America’s non-public and parochial schools as part of this vision and effort.

The Orthodox Union states its firm opposition to one aspect of President Obama’s federal budget proposal which the Orthodox Union believes will harm charities across the American landscape. The President proposes that taxpayers earning more than $250,000 will have their ability to deduct contributions to charities capped. The Administration claims that the current tax deductability is a disparity that this budget will remedy.

Nathan Diament, Director of Public Policy for the Orthodox Union stated:

“The Orthodox Union commends President Obama for issuing a bold and honest budget plan which seeks to address so many of America’s pressing needs.

However, we are concerned over President Obama’s budget proposal to reduce the rate of deductability for charitable contributions. Even in good economic times, a proposal such as the one put forth in the President’s budget would adversely affect America’s charities. In these distressed times, in which charities are serving more people’s needs while at the same time already suffering a dramatic downturn in donations, the proposal to reduce the rate of tax deductability for contributions is a recipe for disastrous displacements and cuts in much-needed non-profit sector institutions and services.

We intend to work with our partners across the nonprofit sector and in Congress to ensure that charities are not harmed in next year’s federal budget and that family-friendly fiscal policies included in this budget remain intact.”