• jeffw@lemmy.worldOPM
        link
        fedilink
        arrow-up
        1
        arrow-down
        2
        ·
        7 months ago

        Not really how percentages work my dude, still less going to the govt

        • Kecessa@sh.itjust.works
          link
          fedilink
          arrow-up
          2
          arrow-down
          1
          ·
          7 months ago

          It’s still exactly the same as contributing to any other charity that has paid employees and everyone has access to the tax deduction that comes with doing this kind of contribution.

          • jeffw@lemmy.worldOPM
            link
            fedilink
            arrow-up
            1
            arrow-down
            2
            ·
            7 months ago

            If I donate to a charity, I can’t hire my friend and pay them a 6 figure salary. No idea how it’s even similar.

            • Kecessa@sh.itjust.works
              link
              fedilink
              arrow-up
              1
              arrow-down
              1
              ·
              7 months ago

              It’s the same thing because your money goes somewhere, you get a tax rebate, someone gets a salary, they pay taxes on that money.

              You can create a non profit charity, hire your friend and pay their salary if you want, you’re 100% free to do that.

              • jeffw@lemmy.worldOPM
                link
                fedilink
                arrow-up
                1
                arrow-down
                2
                ·
                7 months ago

                Ok, let me walk you through the math. I have avoided 100k of my tax burden by donating 100k to my charity. I pay my employee that money. They pay an effective tax rate of 20%. The government gets 20k of my original tax rate. My nonprofit grooms and breeds gerbils. I created this nonprofit that does not exist because I love gerbils. Now the US govt has more gerbils and lost 80k in tax revenue.

                But that’s the same as me donating to the ACLU or some shit?

                • Kecessa@sh.itjust.works
                  link
                  fedilink
                  arrow-up
                  1
                  arrow-down
                  1
                  ·
                  edit-2
                  7 months ago

                  The government hasn’t lost 80k unless you’re taxed at 100%.

                  You donate 100k, you get 20k back in tax rebate as that’s what you paid in taxes on that 100k, you’re still down 80k!

                  The charity then pays an employee 100k, they pay 20k in taxes.

                  The charity is down to 0$, you’re 80k in the hole, that employee has 80k in their pocket and the government has 20k.

                  The only difference is the taxation rate not being the same if you made 200k and kept it to yourself or if you kept 100k and donated 100k to a charity that then paid an employee 100k.

                  Moving money through charities doesn’t make you richer and is probably the worst way to do “tax evasion” when we know the people who do this also have the means to simply hide everything in tax havens.

                  • jeffw@lemmy.worldOPM
                    link
                    fedilink
                    arrow-up
                    1
                    arrow-down
                    2
                    ·
                    edit-2
                    7 months ago

                    You donate 100k, you get a 100k tax break…

                    https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions

                    Maybe you’re confused by the limit of how much of your AGI can be deducted?

                    In general, contributions to charitable organizations may be deducted up to 50 percent of adjusted gross income computed without regard to net operating loss carrybacks. Contributions to certain private foundations, veterans organizations, fraternal societies, and cemetery organizations are limited to 30 percent adjusted gross income (computed without regard to net operating loss carrybacks), however. Tax Exempt Organization Search uses deductibility status codes to indicate these limitations.

                    That does not mean you claim 30% of the donation