The Tax Law of Charitable Giving. Bruce R. Hopkins. Читать онлайн. Newlib. NEWLIB.NET

Автор: Bruce R. Hopkins
Издательство: John Wiley & Sons Limited
Серия:
Жанр произведения: Личностный рост
Год издания: 0
isbn: 9781119756026
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Technical and Miscellaneous Revenue Act of 1988149 introduced rules by which a charitable contribution deduction could arise for payments providing a right to purchase athletic tickets (repealed in 2017) and for corporate gifts of inventory when used in particular instances.

      Leaving aside the inevitable tweaks, reform proposals concerning the federal income tax charitable contribution deduction for individuals are of three types: harmonizing the various percentage limitations on annual deductible giving (including minimizing the distinctions in eligible deductible giving between gifts to public charities and gifts to private foundations), making the charitable deduction more “equitable” (read: making it available to nonitemizers), and converting the deduction to (or establishing as an alternative to) a tax credit.

      The key findings of this report are:

       The tax credit option has the largest positive impact on the amount that would be contributed ($37 billion) and the number of participating households (10.6 million). This proposal would reduce federal tax revenues by $33 billion.

       The unlimited nonitemizer charitable deduction could generate up to $26 billion in additional charitable contributions and induce up to 7.3 million additional households to donate. The federal revenue loss would be as much as $22 billion.

       The nonitemizer charitable deduction with a cap would generate fewer additional charitable dollars than is lost to the federal fisc.

       The nonitemizer charitable deduction with a floor could bring in up to $7 billion more in charitable giving than is lost in federal revenue. This policy option would cause an increase in giving households by as many as 352 per million lost in federal revenue.

      The same study estimated that replacing the charitable deduction with a 25 percent nonrefundable tax credit would have a greater positive impact on charitable giving and a greater reduction in federal revenue than the above-the-line deduction: it would have increased giving in 2018 by $23.3 billion and reduced revenue by $31.1 billion.

      As to the percentage limitations, a good case can be made that the various existing percentages (from 20 to 60 percent) are confusing and unnecessary, and need to be blended and trimmed.