Here’s a simple little tax cut that should be popular with both Democrats and Republicans.
These are hard times for charities. As a result of the Great Recession, the need for assistance is up and donations are down. A simple change in the tax code could help to boost donations.
At present, the only way to take a tax deduction for charitable contributions is to itemize deductions, and many people who donate to charity don’t have enough mortgage interest, medical expenses, etc. to lower their taxes by itemizing. Congress should amend the tax code so that charitable donations are included on the first page of the 1040 form as an adjustment to gross income.
If you are giving part of your income to charity, you shouldn’t be taxed on the money you gave away. Many people, myself included, donate to charity despite the fact that they get no deduction for doing so. This simple change, however, would almost certainly lead to an increase in donations.
The warring parties in Congress can’t seem to agree on much these days. Maybe this quick, simple fix to the tax code could give the donkeys and the elephants an excuse to go out for a drink together after a hard day’s night, raising the millions of dollars they need to keep the jobs they don’t have time to do because they have to spend all of their time raising millions of dollars to spend on pointless, misleading advertising during the upcoming election.
If nothing else, they would have worked together to do something positive to ease the pain of the recession for those not fortunate enough to have jobs on Wall Street.Powered by Sidelines