this post was submitted on 22 Dec 2024
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[–] Sabata11792@ani.social 0 points 3 days ago (1 children)

I don't know why they would kill off a tax ride off.

[–] k_rol@lemmy.ca 2 points 3 days ago (1 children)

I can't tell if you are serious.

[–] Sabata11792@ani.social 0 points 3 days ago* (last edited 3 days ago) (1 children)

American companies get tax breaks for charity and they all exploit the shit out of it.

[–] k_rol@lemmy.ca 2 points 3 days ago

True but they don't make money with this, they still have to spend most of the money.

From your link is a great example:

To illustrate, suppose that the American Cancer Society is hosting a formal dance as a fund-raiser (the ACS is a certified charitable organization). Further suppose that the fair market value of a ticket to the dance is $75, and that the donor pays $375 to purchase a ticket. The donor may claim only a $300 deduction, because the amount contributed ($375) is reduced by the amount of the benefit that he received ($75, the fair market value of the ticket). This holds true even if the donor does not actually attend the dance.

The taxable income of the donor is reduced by $300. If the donor's income was in the 35% income tax bracket both before and after the deduction, the donor's tax liability (amount of taxes owed to the government) is reduced by $105.