January 22, 2018, 10:53 PM
Il CattivoDems in High-tax States trying to get around new Tax Law
^^^ Interesting. The state is a nonprofit provider of police services, road repair, regulation and enforcement for various agencies, etc., etc., etc. In theory each tax payer receives something of value for every penny of tax paid, since in theory all state government services are delivered at cost.
January 22, 2018, 11:17 PM
slosigRight, but SALT (State And Local Tax) deduction is separate from a charity deduction. SALT deduction is now limited, pissing off the spendthrift state govs and they are looking for a workaround for their victims. I don't think that their separate charity workaround will work as in exchange for the taxpayer's "Charitable deduction", they get a reduction in their state taxes of the same amount. It is total BS, like much (?all) of what these leftists spew.
January 23, 2018, 12:28 AM
DMFquote:
Originally posted by flashguy:
"Charitable contributions" are voluntary.
Where is that defined in the tax code?
January 23, 2018, 02:53 AM
Il Cattivoquote:
Originally posted by slosig:
Right, but SALT (State And Local Tax) deduction is separate from a charity deduction.
I understand. I was thinking about the idea that the amount of a charitable gift that is deductible is reduced by the value of anything the giver received in return for the charitable gift.
Here, the state will accept a charitable gift to the state
in lieu of paying state taxes. A taxpayer has to do one or the other, or risk going to jail and paying some very expensive fines. Either way, the money goes to pay for what the state figures is the taxpayer's proportional share of what state services cost to provide. The taxpayer therefore receives state services in exchange for the charitable gift.
Let's say a taxpayer makes a charitable gift instead of paying taxes. The amount 'donated' is the amount that the state has decided is what receiving state services is worth to the taxpayer. If the value of the state services the 'donor' received is equal to the value of the 'donation' to the state, then the amount of the charitable gift that is deductible must be zero.
January 23, 2018, 03:31 PM
flashguyquote:
Originally posted by DMF:
quote:
Originally posted by flashguy:
"Charitable contributions" are voluntary.
Where is that defined in the tax code?
I don't think it is. I also don't think it needs to be. It's not a donation if it is required; if it's not required it is voluntary. What charities are you familiar with that one is forced to make contributions to?
flashguy