Ask HN: How does rich benefit from charitable tax write-offs?

2 points by harish_yadav 6 years ago | 3 comments

I am aware donated income is being written off from the taxable income and they don't have to pay income tax on that component. Yet on a whole, they are giving away the donation amount, which is a lot higher than any tax benefits that they might get. Of course, the government gets fewer taxes but the rich overall pays more.

jmpman 6 years ago |

Once you have enough money, you realize there’s more to life than just money. Philanthropy is a way to help make society better, to give back in ways in which the government is unwilling or unable to fund. For some, it’s a way to get recognition from their peers, but many give anonymously, trying to maintain their privacy.

My view is coming from an American’s perspective. I expect many other countries have less generous philanthropy traditions.

Now, why are Americans such large givers to charity?

mtmail 6 years ago |

If you're talking about those running their own charity https://www.reddit.com/r/technology/comments/ech9sj/googles_... has a good explanation of the money flow.

troydavis 6 years ago | |

Even in this example, the donor is much worse off than they were before donating. That is, the donor didn’t benefit.

Perhaps donating to one’s own foundation is only 90% as good as immediately donating to the final source, but it’s infinitely better for society and worse for the donor than taking no action.