President Obama proposes slight increase to NEA funding in FY14 budget
President Barack Obama's budget proposal for fiscal year 2014 includes a funding request of $154.5 million for the National Endowment for the Arts, a slight increase of 0.14 percent or roughly $200,000 from his fiscal year 2013 request.
Funding for the NEA has been level at $146.3 million since fiscal year 2012 as a result of a series of continuing resolutions, legislation that continues to fund government agencies in the absence of a formal appropriations enactment. Recently, though, the NEA experienced a $7.3 million cut due to the $85 billion in across-the-board cuts to federal spending known as sequestration.
Also in his proposed budget, Present Obama has again called for a cap on itemized tax deductions, which would limit the value of itemized deductions and exclusions for high-income households. Many in the nonprofit and philanthropic sectors oppose this proposal because they believe it would reduce the incentive for charitable giving from high-income individuals.
Under current tax law, a taxpayer would multiply their top tax rate by the amount of a given deduction to calculate tax savings. Under a 28 percent cap on itemized deductions—a percentage which falls below the top two income tax rates—an individual in the 39.6 percent bracket today would save $39.60 on a $100 deduction for charitable giving. Under the president's proposed plan, that same individual would only save $28.