[lews]

This sounds very interesting. I would be concerned, however, that it would kill any industries that rely on tax free contributions. I imagine that a great number of charitable organizations would die a quick and sudden death.

[kevkrom]

This sounds very interesting. I would be concerned, however, that it would kill any industries that rely on tax free contributions. I imagine that a great number of charitable organizations would die a quick and sudden death.

History has shown that people with more disposable income will contribute more to charity regardless of tax benefits. Under the NRST, people will have more disposable income because net prices (after tax) should remain about the same, but everyone gets their full paycheck (or investment return, etc.) without taxes being taken off the top.

[Principled]

This sounds very interesting. I would be concerned, however, that it would kill any industries that rely on tax free contributions. I imagine that a great number of charitable organizations would die a quick and sudden death.

You are wise to be concerned with charitable contributions - something Americans are quite good at - we are generous. The purpose of income tax deductions for charitable contributions is to make it so the donations are made with untaxed, pre-tax dollars. If no dollars are taxed, all dollars are pretax. Hence there doesn't seem to be any reason that this would affect charities in the way you mention.

Shoot, only about 25% of filers itemize anyway - and they're the only ones who can take deductions for charitable contributions.

Fair Tax FAQ.

[Remember_Salamis]

Charities have been around a lot longer than the income tax. Think about it.