President Bush sent his $2.8 trillion budget for fiscal year 2007 to Congress earlier in February. Here are some highlights:
- 141 programs, including a program that provides meals to about 400,000 needy elderly people, singled out for elimination or severe cuts, saving $15 billion.
- $1 billion reduction in the community development block grants program, which supports numerous housing and economic-development efforts by nonprofit organizations.
- $4 billion for a global program to fight HIV/AIDS, an increase of $740 million from last year.
- $7.8 billion package of tax breaks affecting charities:
- Allowing people age 65 and older to make charitable donations from their IRAs without paying income taxes on the donated amounts.
- Extending to all companies the tax deductions now available to certain types of businesses that donate food to food banks.
- Lowering of the federal excise tax on private foundations to 1 percent of their investment income.
- Requiring charitable remainder trusts (CRTs) that earn unrelated business income to pay 100% income tax on such income instead of losing their exempt status for the year in which such income was earned.
For a more detailed look at the President’s budget, click here.