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A Tax Credit to Boost Charitable Giving A Tax Credit to Boost Charitable Giving
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Supporting the Tax is Like Choosing to Give with a 100-Million-to-One Matching Grant Supporting the Tax is Like Choosing to Give with a 100-Million-to-One Matching Grant
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The Taxpayer’s Choice: Different for Individual Giving than a Tax and Credit The Taxpayer’s Choice: Different for Individual Giving than a Tax and Credit
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Huge Problems could be Solved with a 100-Million-to-One Match Huge Problems could be Solved with a 100-Million-to-One Match
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A Solution that Ought to Appeal to Conservatives and Liberals Alike A Solution that Ought to Appeal to Conservatives and Liberals Alike
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References and Further Reading References and Further Reading
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23 The Choose-Your-Charity Tax: A Way to Incentivize Greater Giving
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Published:December 2011
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Abstract
Many people do not give as much as they can afford to charity due to the seeming irrelevance of a single contribution. The problem with good causes is that the very thing that makes a charity a good cause is the enormity of the problem it is fighting. Yet because the problem is so vast, it appears that one's gift is merely a drop in the bucket. This chapter proposes a strategy to deal with this problem. It involves expanding upon the idea and power of a matching grant: the Choose-Your-Charity Tax. Under the current tax system, contributions to eligible charities are tax-deductible. The Choose-Your-Charity Tax proposal would replace that rule—and go much further. The new rule would be this: People would get a tax credit of $1 for each dollar they spend, up to a certain limit, on a charitable contribution. To make the plan revenue-neutral for the government, that limit would be equivalent to a tax increase.
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