basquebromance
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- Nov 26, 2015
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Facing facts: The War on Poverty has failed the poor
Private charity, which actually effectively fights poverty, decreases as tax rates skyrocket, and it’s not hard to see why. To some extent, anyone’s ability and willingness to charitably donate is limited by how much disposable income they have. Endless taxation to fund inefficient government anti-poverty programs leaves less in people’s pockets, so they’ve got less to donate.
A bevy of research confirms this. Before former President Franklin Roosevelt's New Deal, churches and other private institutions played a much larger role in social welfare, according to a working paper from the National Bureau of Economic Research. Afterward, those huge increases in government spending crowded out large amounts of this charitable activity, particularly among churches. The lesson is clear: Taxes don’t just kill jobs, they can kill charity, too.
According to the American Legislative Exchange Council, “When all state taxes are considered, a 1 percentage point increase in the total tax burden is associated with a 1.16 percent drop in charitable giving per dollar of state income.” It’s true that our tax code contains a deduction for charitable giving, but it actually does far less to promote donations than you might think. When people are asked for the reason they chose to donate to charity, on average, the deduction ranks 11th. In fact, the Heritage Foundation found that abolishing the charitable deduction and switching our federal income tax system to a flat tax at a lower rate would actually increase charitable giving, because it would increase personal income.
our food stamp system isn’t exactly efficient either. Roughly 15 percent of the program’s funding goes to administrative expenses. Meanwhile, at the private charity Action Against Hunger USA, almost 90 percent of funds received directly benefited the poor.
The website CharityNavigator.org offers visitors a report of the efficiency and reputability of more than 5,000 charities. The IRS offers no such option, so it’s almost impossible to track your taxpayer dollars and see if the government is wasting it.
Need a link for the Primary source of this copyrighted material.. Try to put one in before your edit time expires -- or PM it to me so I can add it.. basquebromance FlaCalTenn
Private charity, which actually effectively fights poverty, decreases as tax rates skyrocket, and it’s not hard to see why. To some extent, anyone’s ability and willingness to charitably donate is limited by how much disposable income they have. Endless taxation to fund inefficient government anti-poverty programs leaves less in people’s pockets, so they’ve got less to donate.
A bevy of research confirms this. Before former President Franklin Roosevelt's New Deal, churches and other private institutions played a much larger role in social welfare, according to a working paper from the National Bureau of Economic Research. Afterward, those huge increases in government spending crowded out large amounts of this charitable activity, particularly among churches. The lesson is clear: Taxes don’t just kill jobs, they can kill charity, too.
According to the American Legislative Exchange Council, “When all state taxes are considered, a 1 percentage point increase in the total tax burden is associated with a 1.16 percent drop in charitable giving per dollar of state income.” It’s true that our tax code contains a deduction for charitable giving, but it actually does far less to promote donations than you might think. When people are asked for the reason they chose to donate to charity, on average, the deduction ranks 11th. In fact, the Heritage Foundation found that abolishing the charitable deduction and switching our federal income tax system to a flat tax at a lower rate would actually increase charitable giving, because it would increase personal income.
our food stamp system isn’t exactly efficient either. Roughly 15 percent of the program’s funding goes to administrative expenses. Meanwhile, at the private charity Action Against Hunger USA, almost 90 percent of funds received directly benefited the poor.
The website CharityNavigator.org offers visitors a report of the efficiency and reputability of more than 5,000 charities. The IRS offers no such option, so it’s almost impossible to track your taxpayer dollars and see if the government is wasting it.
Need a link for the Primary source of this copyrighted material.. Try to put one in before your edit time expires -- or PM it to me so I can add it.. basquebromance FlaCalTenn
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