Charitable deductions are disincentives to community and social responsibility.See my very similar, earlier post on this blog, "The Problem With Charitable Tax Deductions."
Charitable deductions focus on organizational structure and not compassionate actions. If I invite and feed a poor person in my house on Thanksgiving, the tax deduction is not available. If I donate food or money to a food bank or church that feeds the same person, I get a deduction.
If I grocery shop or cook a meal for a needy, ill senior in my neighborhood, no deduction. If I donate to an organization that has volunteers who do the same thing, I get a deduction.
The required organizational structures add a middle layer of inefficiency and bureaucracy, which reduces the effectiveness, timeliness, and value of charitable giving.
When there is suffering, such as an earthquake, we do not need tax deductions to motivate us to send money, food, etc.
Eliminate charitable deductions. If the government takes too much money so we cannot donate as much as we like to charities, fight for lower taxes.
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Monday, August 7, 2017
Charitable Deductions Are Disincentives To Social Responsibility.
Posted By Milton Recht
My published comment to The Wall Street Journal, "Charities Coax Lawmakers to Rethink Tax Plan: Nonprofits pitch idea of ‘universal’ tax deduction for charitable contributions, which would likely decline if Congress were to double standard deduction" by Richard Rubin:
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