Quote:
In other cases they give you a tax credit, e.g. your taxable income is reduced, and there are weird rules and games you can play.

In this case you simply wouldn't be charged tax for this purpose. You'd be eligible for whatever tax credit you might otherwise, the point is not to change the tax code, the point is to meet a need, if possible outside the government's budgeting powers, and having done so, allow reaping of the reward for it.


So would you have to prove that you gave in order to be eligible for the tax rebate? I guess you are saying no, that the tax rate would simple be lowered as the "need" was met by whoever felt like it. I suppose that is consistent with libertarian goals. Of course as a liberal I don't see it ever happening (and I suspect you don't either). Those who have the most to give are the least likely to (they have the most incentive not to due to being out of touch with the needs of those who most desperately need the assistance). Not to mention that if the scheme doesn't work you are penalizing those who did try to help by taxing them regardless.

If you do attempt to verify that someone at least attempted to give by setting some minimum gift percentage to be eligible for the tax cut then you have all the same game-ability and other issues that the current tax incentives have.

-Mike
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