Proper tax treatment of charities thwarted by welfare state

The Denver Post published my letter to the editor in their March 31 edition:

Joel Stein’s commentary against tax-deductible charitable donations is penny-wise but pound-foolish. By favoring some types of spending and punishing others, the tax deduction indeed violates our freedom to spend our earnings as we please. He suggests that the increased tax revenue from eliminating the deduction could “help pay for health care.” But compared to the tax deduction, this is a much worse violation of our freedoms.

Tax-funded health care is mandatory charity. Unlike voluntary charities, government charities need not compete for and earn your donations. The penalty for tax evasion effectively encourages your “donations.”

If Mr. Stein wants more fairness toward charities, he’d support allowing taxpayers to opt out of funding entitlement programs by donating to charities of their choice. For example, if you donate $100 to a low-income medical-care charity, Medicaid loses that funding and you pay $100 less in taxes.

Advertisements

Leave a comment

Filed under published

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s