Quote:
Originally Posted by Pete F.
Of course it's the Liberals bankrupting CT, left to their own devices Conservatives would make it as good as Kansas.
Nothing will work well, till people work together.
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"You do understand that deductions for charitable giving increase the amount you can give without affecting your spendable income"
No I do not understand that, because it's absolutely false. There is a huge difference between a tax credit and a deduction. You are confusing the two.
If I donate $100 to charity, and I am able to deduct that $100 from my taxable income, and I'm in a 25% tax bracket, that means I get $25 back. I do not, not even close, get the whole $100 back. Deductions do not, not even close, restore your full disposable income. Deductions reduce the amount by which your disposable income decreases. Deductions do not make it 'free' to donate to charity.
The tax cuts give most of us more take-home pay. Many of us will give some of that to charity.
Take accounting 101. A tax credit is a dollar-for-dollar reduction is taxes owed. A deduction reduces your tax liability by pennies on the dollar, not dollar for dollar.