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To: Blood of Tyrants
Regarding charities:

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.

16 posted on 09/28/2005 12:50:15 PM PDT by hripka (There are a lot of smart people out there in FReeperLand)
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To: hripka

Then you are giving for the selfish reasons.


67 posted on 09/28/2005 2:08:39 PM PDT by Blood of Tyrants (G-d is not a Republican. But Satan is definitely a Democrat.)
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To: hripka

"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.


183 posted on 09/28/2005 8:05:52 PM PDT by phil_will1 (My posts are in no way limited or restricted by previously expressed SQL opinions)
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