Can someone please explain the thinking behind this? It has been years since I actually did accounting and granted I tend to understand numbers, but this just doesn’t make sense.
Speaking at a prime-time news conference, the president said the change in tax policy would be realistic and fairer to lower-earning families that make charitable gifts but get a smaller tax deduction.
If I read that correctly, he thinks that people who don’t give as much should get a bigger donation than people who give a larger amount of their income in donations. Just taking it from a personal point of view, my mother donates a lot more than I do because she has more income than I do. If she gives more than she should get more of a benefit than I do. But, it sounds like he thinks it would be fairer if I get the same benefit she gets for giving less. Oh, nonprofits are going to love this because while the small donations help, but there is a reason why they have people who only work on major gifts.