If, for example, you are at checking out at Home Depot and they ask you “would you like to round up your total to the nearest dollar to benefit x__________ charity” DONT do it. They are taking that money and donating it in their name and using that donation to be tax exempt.
If you feel so inclined, donate it personally and help hold these mega corporations accountable for what little taxes they do have to pay.
Explain to a brainlet how this works. I thought it was that you just don't pay taxes on money you donate, right? Like, it's just as if you never made that money, it doesn't affect the rest of your income.
deleted by creator
Yeah, but if someone gives you $10, you have $110, then you get it tax deducted and you're back to $100.
deleted by creator
Still not getting it. If I make $100 I pay ten percent, $10. If someone gives me $10, now I owe ten percent of that, which is one more dollar, total is $11. I give what they gave me to charity, that portion goes away and I'm back to the 100/10 I started with. My original income has not changed at all, and neither have the taxes on it.
I don't get how the charity money changes the original amount you made. You still have to pay taxes unless you make nothing at all.
deleted by creator
I'm not giving them $10 to pay their taxes, I'm giving them $10 to donate to charity. They don't have to pay taxes on that $10, sure, but they certainly can't use it to pay their bills.
The cost equation is the same, to reduce tax cost by $10 you have to increase charity cost by $10.
deleted by creator
right but the government takes $10 off their taxes anyway.
100 + 10 (donation) - 11 (taxes) + 10 (rebate) - 10 (donation spent) = $99
you're up $9 on the whole exchange