WHAT WILL HAPPEN TO CHARITABLE GIVING?
It will probably increase under the FairTax. The FairTax will allow people to make charitable contributions out of pre-tax dollars. Under the current system, the charitable deduction only offsets a portion of your tax liability. In fact, most taxpayers today cannot deduct their contributions, only the relatively few (28 percent) who itemize may deduct their contributions. For those generally less affluent taxpayers who do not itemize, the cost of charitable giving will actually decrease under the FairTax because they will be able to make contributions from pre-tax dollars.
