Do you think that if Donations to Charity were NOT tax deductible... the rich would keep Donating?
by 
buxtonite ..back from the brink
ANSWERS: 6
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Some would, most would not.
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Yes, I am sure some give out of the goodness of their heart, or for personal reasons. But it would certainly cut into the amount donated.
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I think some of the rich would continue to donate, and others would not.
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Donations to Charity existed before there were any tax deductions, or any income tax, no?
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You do realize that "tax deductible" is not the same as "free", right? Say you're in the 30% tax bracket, State and Federal (that's not very rich). You donate $100. That's pre-tax money. If you had kept the $100, you'd then pay $30 in tax(es), and so you'd really keep $70. So, essentially, it costs you $70 (that you otherwise would have kept) to make a $100 donation. If the donation were not tax deductible (or if you donate today to a non-approved organization), then you'd have to pay the $30, which would come out of your other earnings.
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Most rich people would keep donating, some may have second thoughts and cut the donations off. Regards.
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