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Nobody is saying charities should be abolished, just that they should receive no tax exemption since it's so easy to abuse. Assuming this would generate a lot
by tux1968 8y ago
Nobody is saying charities should be abolished, just that they should receive no tax exemption since it's so easy to abuse. Assuming this would generate a lot more revenue for the government, the tax rate could be reduced to make this a net-zero proposition -- leaving the same amount of money available for legitimate donations.
- CompelTechnic 8y agoEconomic decisions happen on the margin. Reducing the deductibility of charitable contributions will reduce the total dollar amount of legitimate charitable contributions that occur by a lot. Changing the overall tax rate is bringing a much larger argument into this (tail wagging the dog).
- lostapathy 8y agoThis is a line of thinking that's all too often forgotten. As you point out, it's very possible to raise taxes/eliminate a loophole on a bad policy without giving more money to the government overall. Sure, the rich give more to charities, but they also pay the most taxes. The net change of parent's proposal would probably be smaller than most people expect for the average charitable person.