What would happen if charitable contributions (across the board) were no longer tax deductible?
To claim tax credit on contributions, you usually have to itemize. For itemized deductions to exceed standard deductions, it would take a certain amount of taxable income. So, would doing away with this deduction create more government revenue than an increase to the top 1%? Or would charities dissappear and the true "giving spirit" of Americans be exposed as a mere facade with an ulterior motive? Are we truly that generous? Thoughts?
It would make it unaffordable for people to give as much to charities as they do now, giving politicians an opening to create new layers of government and many patronage jobs to pass out to their supporters, and bureaucrats an opening to expand their power, empires and revenues. Statists everywhere are enamored of the idea.
There is a finite amount of cash within the monetary system. At present we Americans are fortunate enough to deduct some charitable payments from our tax bills each year if we submit an itemized tax return.
Given that if this gives us a slight reduction of our taxes it does provide an incentive to give.
Taking the ability to reclaim charitable donations will hit charities and the public badly in several ways.
1. As the money supply is finite we will all have less cash to dispose of.
2. We will feel less good about ourselves for giving to charities.
3. Charities will lose income, be able to employ fewer people thereby contributing to unemployment.
4. Charities will buy less products meaning companies which produce materials which charities buy in bulk will lose income again laying off workers and contributing to a further faltering of the global economy.
5. Government would either need to expand to fill the void left by charities or many services now provided by charitable organizations will be lost.
The charitable ggiving tax allowance is in my opinion a vital part of tax legislation and should not be removed from the available claims given to US taxpayers.
I'm almost certain that contributions would go down, because tax deductions are the only reason that some people contribute to charities.
People who give to charities would do it regardless. You never save as much in taxes as you give. Deductions don't work like that. What the loss of them would do is send less money to charities, more to government. Fie upon that.
I agree w/ Attikos. Monetary donations to charities would probably decline since tax shelter is the primary motivation besides notoriety for many, but not all, philanthropists.
Charitable donations are not tax shelters, they are tax deductions. People give them because they want to help the charities achieve their objectives. That motive would not disappear were the donations not deductible.
There would not be as many donations, because the extra money people would usually donate would just go to taxes.
There would be fewer charitable donations. We'd probably have higher taxes to pay for natural disasters.
by Jimbo'daNimbo 5 years ago
http://www.weeklystandard.com/blogs/rom … 52850.htmlLooks to me like to boy has taken care of what needed to be done and given generously.How sad he didn't do what the left wants us to believe.
by secularist10 5 years ago
At first, it appears so, according to this article:http://news.yahoo.com/mormon-bible-belt … 34869.html"Americans in Utah, Mississippi, Alabama, Tennessee, South Carolina and Idaho gave the highest percentage of their income to charities in 2008, according to a report released on Monday...
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