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A more accurate way of looking at this is that the government is incentivizing a desirable behavior by matching a portion of any money a person contributes to t
by dougmwne 9y ago
A more accurate way of looking at this is that the government is incentivizing a desirable behavior by matching a portion of any money a person contributes to the common good. You have to give up some of your own after-tax wealth to get the govt to kick in 20-30%. Since an individual is mostly putting their own money into the charity, they will want to maximize their good feelings by chosing a charity that adds a lot to the common good. And this is especially true for people who make large gifts.
...At least for the US tax system(where this gift was made)
- xioxox 9y agoThough many voters may not like government matching a donanation to, for example, the Scientology organisation.
- fjsolwmv 9y agoThat's the theory, ut in practice most people give not to charities for others but to schools/clubs/churches they are a member of, so it's a form of nongoverbmental State/Local taxes.