Ladewig
I lost an avatar bet.
- Joined
- Dec 4, 2001
- Messages
- 28,828
See post 53.
When an organisation (which generally has tax exemption status, i.e. does not pay taxes) is entitled by law to receive tax deductible donations (different but connected concept), in effect gets "government money".
When you say to the tax office "I gave $10,000 to the Church of Scientology, so my income is reduced by this amount" and your marginal tax rate is, say, 50%, in effect you say "instead of giving you $5,000 to spend at the Government's pleasure, I have given your $,5000, plus $5,000 of my own money, to the Church of Scientology, with your blessing."
I had never thought of it that way.