The Charitable Deduction as a Tax Expenditure: What it Buys and What to Do About It (Part 1)

In size, the tax deduction for charitable contributions ranks sixth on the dirty-dozen list of tax loopholes, far behind deductions for employer-paid health care or home mortgage interest. In popularity, though, it probably ranks first. Perhaps that is because so many people think it really is what it purports to be: a reduction in taxes that encourages charitable giving. Since people like both tax cuts and charity, it is not surprising that they like the charitable deduction. Before we accept that reasoning, however, we need to look more closely at what the charitable deduction really is and what it gives us. Read more>>>