Comments on: Middle-class American dream needs less real estate Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 By: roboticowl Sat, 16 Jun 2012 02:00:47 +0000 The problem with putting deductions for charitable contributions in the same bucket as those for retirement savings or mortgages is that they (at least in theory) benefit needy causes.
If I pay for a house or put money in an IRA, I’m the only one benefits (banks aside). If I donate to a charity, people or organizations who need the money — poor people, students who need tutoring, non-profit research groups, etc. — benefit. Charities fill gaps in social services and (ideally) reduce government spending.
I can see a need for refining definitions of what constitutes a tax-deductible charity. However, removing this incentive for people to donate will likely lead to a reduction in services and a further burden on the government budget.