On 4/3/2013 10:00 AM, Han wrote:
Swingman wrote in
:

On 4/3/2013 9:12 AM, Han wrote:

Because this is to help a specific individual, rather than a
charitable cause, it is not tax deductible. That does not imply that
Give Forward isn't a noble and charitbale way to give, just that tax
law doesn't let it be "charitable" for tax purposes.

Perfect example of the unfortunate necessity of laws to govern human
behavior. If this were somehow allowed, the plethora of dickheads in
the gene pool (starting with the lawyers?), would be abusing it for
their own, other than charitable, benefit.

Would be a long, long discussion if we are going to talk about what
should or should not be deductible. BIG GRIN

Just for those who don't realize it, deductions such as chariable
deductions, reduce your taxable income only, they are NOT credits
against a tax bill. This makes deductions highly regressive in their
benefits: Example: If I give $1000 to the food pantry, which is a
deductible expense, the benefit I get depends on my top marginal tax
rate. Therefore giving is most "profitable" for those whose income is
highest. Tax rates for 2013 for married filing jointly:

10% on taxable income from $0 to $17,850, plus
15% on taxable income over $17,850 to $72,500, plus
25% on taxable income over $72,500 to $146,400, plus
28% on taxable income over $146,400 to $223,050, plus
33% on taxable income over $223,050 to $398,350, plus
35% on taxable income over $398,350 to $450,000, plus
39.6% on taxable income over $450,000.

Obviously my $1000 cost me only ~$600 if I have the highest income, but
costs me $900 if I earn less than $17,850.


Another reason that the poor should be under the 39.6" tax rate and the
rich under the 10% rate, The poor would benefit more than the rich for
charitable contributions. :~O