Re:The Undermining of American Charity
by dragonwriter on Wednesday August 31, 2016 @12:04PM
(#12399300)
> Tax exempt status is a form of subsidy, paid by everyone who pays taxes.
Tax exempt status may or may not be for any given operation (lots wouldn't pay any, or many, taxes even if they weren't tax exempt), but tax deductibility of donations to an organization is very clearly a form of subsidy, and one which increases with the marginal income tax rate (and thus, with the income) that would be paid by that organization's donors before considering the deduction for their donations.
Tax exempt status may or may not be for any given operation (lots wouldn't pay any, or many, taxes even if they weren't tax exempt), but tax deductibility of donations to an organization is very clearly a form of subsidy, and one which increases with the marginal income tax rate (and thus, with the income) that would be paid by that organization's donors before considering the deduction for their donations.