Ask HN: How does rich benefit from charitable tax write-offs?
I am aware donated income is being written off from the taxable income and they don't have to pay income tax on that component. Yet on a whole, they are giving away the donation amount, which is a lot higher than any tax benefits that they might get. Of course, the government gets fewer taxes but the rich overall pays more. Once you have enough money, you realize there’s more to life than just money. Philanthropy is a way to help make society better, to give back in ways in which the government is unwilling or unable to fund. For some, it’s a way to get recognition from their peers, but many give anonymously, trying to maintain their privacy. My view is coming from an American’s perspective. I expect many other countries have less generous philanthropy traditions. Now, why are Americans such large givers to charity? If you're talking about those running their own charity https://www.reddit.com/r/technology/comments/ech9sj/googles_... has a good explanation of the money flow. Even in this example, the donor is much worse off than they were before donating. That is, the donor didn’t benefit. Perhaps donating to one’s own foundation is only 90% as good as immediately donating to the final source, but it’s infinitely better for society and worse for the donor than taking no action.