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Chances are these billionaires are pledging to make these donations specifically to avoid taxes. I agree that the government would probably waste the tax money anyway, but ultimately the government needs some way to pay off its debt, and taxing the rich makes more sense than expecting the middle class to foot the bill.

Of course if these billionaires put significant amounts of money toward various respectable aid programs it may reduce the amount that the government needs to spend, allowing it to direct more money toward paying off the debt.



This is a common misconception about donations. Donating money never makes you better off financially because donations are eligible for tax deductions, not credits.


This is true. But it means that none of these people will ever pay tax again going forward.


Correct, but it avoids the need to have to pay taxes on those funds which were donated. That is what I was referring to.


Giving away 100% of an amount to avoid paying x% of same amount in taxes hardly seems productive.

This only works if it somehow lowers your overall tax load, and for Mr. Billionaire, I don't think it's much of an issue.


Choosing where it goes is a cool benefit. It's like you can pay a smaller percent and they will choose, or you can pay a bigger percent but you get to choose where it goes? It's very possible that I'm totally misunderstanding the rules.


It is a cool benefit, albeit a philanthropic one, which in and of itself defeats the argument the OP was making.


The benefit then is the feeling of self-actualization and pride at having done something good for other people.


...which would be counter to your original post.


Thanks for correcting my thinking and helping me see the light. :)


meh... it happens to me too, more often than I care to admit actually! :-)




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