The California Association of Nonprofits (CAN) recently completed a study of the impact on nonprofits of funding cutbacks in California. In the report "Holes in the Safety-net: Study of Funding Cutbacks and Safety-net Nonprofits in California," CAN found that a wide range of nonprofits in the state are squeezed between revenue reductions and increased demand for services.

The political reality, especially in an election year, makes extension of the so-called "middle-class" tax cuts very likely. Hardly anyone is arguing against extending these cuts, as long as they are paid for. However, there are very good arguments why, even If the cost of the extension is offset, extension of these tax cuts is not supportable.

We reported earlier that Senate Finance Committee Chairman Charles Grassley (R-IA) wanted to delay until September consideration of extending the "middle-class" tax cuts -- marriage penalty, expansion of the 10% income tax bracket, and the $1000 child tax credit -- that will expire on December 31. However, the Bureau of National Affairs (BNA) reported July 12 that House and Senate leaders plan to consider the cuts late this week.