Changes to Charitable Tax Deduction Could Cost Charities

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irsSubsidizing giving through tax deductions benefits the rich but ends up costing charities and the government, according to The Washington Post’Wonkblog, though having the deductions probably encourages giving.

The article discusses several proposals to alter the charitable deduction, but they come at the expense of charities.

For example, replacing the deduction with a refundable credit would reduce giving by $6-billion to $10.8-billion, while federal revenue would only increase by $9.4-billion to $10.4-billion, leaving a small possibility that it could end up costing charities more than it earned the government.

Source: Philanthropy

{Matzav.com Newscenter}

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