Re:The Undermining of American Charity
by skybrian on Wednesday August 31, 2016 @11:16PM
(#12402890)
Well, my point is that the charity still gets $1000 regardless of tax rate. You could increase how much you give based on your expected tax savings so it costs you $1000 after the tax refund, but it's not automatic.
If your marginal rate of taxation on income is, say, 35%, then you give up only $650 in disposable income to donate $1,000 to charity. Without the deduction, someone in that circumstance who could afford to give $1,000 with the deduction could only give $650.
Or, looked at a different way, someone with that tax rate who "gives $1,000" to charity is really giving $650, and the government is giving $350.