Yes, so they take your money, donate it to a cause that they are aligned with (possibly under the same corporate structure) take a tax credit on a portion of what you gave them to donate (which helps reduce their tax burden to near-zero), and enrich their friends in the process.
At least in the US the part about individuals getting a tax break would only apply if they’re itemizing their deductions which usually works out to be higher tax rate than the standard deduction for the majority of people.
~~Because why would anyone exploit themselves if we made it easy for the poors to survive?~~Because why would anyone work hard to become a billionaire?
You’re saying they save more in tax than the amount you donated? I thought they just didn’t get taxed on that money (which is fair as it’s not really income if it’s getting passed along).
Yes, so they take your money, donate it to a cause that they are aligned with (possibly under the same corporate structure) take a tax credit on a portion of what you gave them to donate (which helps reduce their tax burden to near-zero), and enrich their friends in the process.
At least in the US the part about individuals getting a tax break would only apply if they’re itemizing their deductions which usually works out to be higher tax rate than the standard deduction for the majority of people.
It doesn’t reduce their tax burden, as they are receiving extra income from your dollar. There’s no tax loophole here.
The benefits to the company come from “look at all the charitable work we did last year”, and sometimes croniesim as op pointed out.
In the U.S. we really need to decouple charitable donation tax breaks from itemization.
Also, why not raise the standard deduction to say, $75k and tax billionaires whatever it takes to make up the difference ¯_(ツ)_/¯
Get out of here with your reasonable suggestions!
~~Because why would anyone exploit themselves if we made it easy for the poors to survive?~~Because why would anyone work hard to become a billionaire?
You’re saying they save more in tax than the amount you donated? I thought they just didn’t get taxed on that money (which is fair as it’s not really income if it’s getting passed along).