One recent Obama tax proposal might entail a decrease of as much as $3.87 billion for the nonprofit sector. President Obama proposes to cut the tax deductions that wealthy Americans can claim for their charitable donations by arguing that the shift would not have an adverse effect on giving. In a press conference last week, Obama defended his budget plan by stating, “there’s very little evidence that this has a significant impact on charitable giving.” However, a report from the Center on Budget and Policy Priorities said total charitable contributions would decline by about 1.3 percent, while the Center on Philanthropy at Indiana University calculated that overall giving would drop by 2.1 percent and that the highest-income households would decrease their giving by 4.8 percent, or $3.87 billion. Under Obama’s proposal, the tax deduction for those with incomes over $250,000 (currently 35 cents on the dollar) would be limited to 28 percent, returning to the rate that existed under the Reagan administration. Obama said that the provision would affect about 1 percent of Americans. Nonprofits that rely heavily on large donations from wealthy individuals are more likely to be affected by Obama’s proposal than are those that raise money in smaller amounts.