From the book, pg. 165: "With taxes at the 39 percent level, why would they spend $1000 to save $390?"
Saving $390 (or my marginal income tax rate amount) reduces the impact of my giving the $1000. It sure affects my thinking when I write out a check to a charity. And Boortz pooh-poohs this? It must affect others as well.
Regarding currently tax-exempt organizations:
I mentioned that their comparative advantage is reduced.
Then you are giving for the selfish reasons.
"Saving $390 (or my marginal income tax rate amount) reduces the impact of my giving the $1000. It sure affects my thinking when I write out a check to a charity. And Boortz pooh-poohs this? It must affect others as well."
The purpose of the charitable contributions deduction is so that you can donate pre-tax dollars. However, there are many limitations imposed by the IRC. With the FairTax, all donations are made with pre-tax dollars, and are not subject to any government limitations. For example, less than 40% of US tax filers itemize. With the FairTax, you don't need to itemize.