Vladimir Menkov <vmenkov[at]cs.indiana.edu> wrote:

- quote -

Interesting! I believe there have been proposals in the US
Congress to do somewhat the same thing. That is, limit the
deductibility of the standard deduction, and perhaps all
itemized deductions, to the lowest bracket (which was 15% at
the time I last heard this proposal mentioned).

MTW

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MTW <mtwingcpa[at]yahoo.com> wrote:

- quote -

It may not be too surprising that although Canadian income
tax system is generally fairly similar to the American one,
Canada uses credits in place of some US deductions.

For example, a BC taxpayer receives a 22% credit for the
first $250 of his charitable contributions, and a 45% credit
for the rest of them. (22% and 45% are somewhat approximate
numbers; the actual numbers are exactly equal to the bottom
and top combined federal+provincial tax rates in this
province). However, I believe that you always need the
official receipts with $$ amounts, and I don't think that
places like Salvation Army stores issue them.

Our equivalent of standard deduction works the same way --
you get a fixed credit (22% * $8000 or so), so basically the
credit is equivalent to subtracting the deduction from the
"bottom" of one's income, rather than from the top. No
personal exemptions here, though: Canadian "tax and benefit"
system rewards its parents in different ways (which are
actually means tested).

--vld.

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ebetts3[at]msn.com (Ernie Betts) wrote in news:1085g4r2tvi7cc5
- quote -

Hmmm, I would have thought they come out of a certain
orifice :-)

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Frederick Jorden at knowtax[at]bigfoot.com wrote:
- quote -

Sounds like you ought to hire somebody to do this. It does
not take very much effort to look at a bunch of deductions
and see that hey don't add up to the standard deduction.

- quote -

Everybody is entitled to the same deduction, church going
old ladies, drug dealers, greedy sobs and you. Why do you
give to charity, to get the tax deduction or to do a good
deed? Another way to look at this is that you are a $1500
freeloader.

- quote -

So write to your Congress person?

All freely provided advice guarantee correct or double your
money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

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Dick Weaver <rweaver[at]ix.netcom.com> wrote:

- quote -

Actually, you make an extremely valid point. All other
things being equal, DEDUCTIONS generally favor taxpayers
with higher incomes, while CREDITS generally favor lower.
So, it is often the case that we see debate as to whether a
particular item should be structured as a deduction or as a
credit.

MTW

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- quote -

Case in point! We HAD a deduction for educators. The $250
adjustment was a two year wonder, for tax years 2002 and
2003 only.

--
Don EA in Upstate NY

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Andy Green wrote:
- quote -

I do not get to itemize too. But I do not have a mortgage.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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D. Stussy wrote:
- quote -

And when they had it it only was a pittance. We now have an
expanding number of deductions for AGI, e.g. educators,
tuition etc. What he needs is a better lobby.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Frederick Jorden wrote:
- quote -

Note that they may ignore this one. Contributions used to
be IN ADDITION to the standard deduction/zero bracket for a
while in the 1980's (e.g. 1040 line 36b on the 1986 year
form); apparently not so in the 1970's or 1980 or 1981.

They had it. They killed it. Things like that don't generally return.

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Joe-46er wrote:

- quote -

You don't understand the purpose of deductions. Given tax
rates that increase with taxable income and deductions that
come off your top rate, the purpose of deductions is to
transfer tax from the wealthy to those less wealthy. The
best sting is the one where the victim not only doesn't
know, but actually likes it!

Think about it, just do the math - deductions are working
just fine for their intended purpose; the lobbyists who
draft tax rules are not poor. Get the book on the tax
system just published, written by a New York Times reporter,
as I recall. Read that and you can get really angry. And as
angry as you get, you will still know that it will only get
worse.

dick w (who shouldn't post this and get identified as
radical because then people will stop reading my posts but
if I let it sit until tomorrow I'll still send it, so ...
click)

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Joe-46er <nobody[at]nospam.com> wrote:

- quote -

Stinks don't it?. Those are the rules...

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Joe-46er <nobody[at]nospam.com> wrote:

- quote -

Stinks don't it?. Those are the rules...

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- quote -

You donated $6500 to charity but only have $1500 in other
deductions???? You paid no property tax, do not have a
mortgage, no automobile????? Are you *sure* your itemized
deductions were only $8000?

Carol
What can one expect of a day that begins with getting out of bed.

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Joe-46er <nobody[at]nospam.com> wrote:

- quote -

That could have been figured in about 5-10 minutes, because
you said $6500 of the $8000 was cash donations.

- quote -

Agreed, BUT only if amounts over say $250 can be documented
by forms reported to IRS like IRA's, etc so it can be
"proved". There is too much over reporting of cash donations
now. I do taxes and many of those figures come
"right-off-the-ceiling"

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"Joe-46er" <nobody[at]nospam.com> wrote:

- quote -

What is the purpose of your giving?

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"Joe-46er" <nobody[at]nospam.com> wrote:

- quote -

Andy replies:

Yes. However the philanthropist who working in the charity
each weekend and Wednesday nite, mowed the church lawn,
mended the church roof, and volunteered in the hospital gets
NOTHING at all for his/her trouble. So, there's lots of
people who don't qualify that have made substantial
investment in something that is probably more dear to
themselves than money.....

- quote -

It would make more sense to dis-allow charitable deductions
at all. After all,one point of view is that in taking "tax
money" away from the government, it only can be "made up"
by higher rates from the taxpayers who didn't want to give
money to charities, or couldn't afford to...

A significant postion of the tax money goes to support
social services and the poor and indigent, and many feel
that since much of this burden has been lifted from churches
and charities, it can be considered "compulsory titheing".

A suggestion would be to "learn the rules" before one plays
the game. If, after learning that the money that is given
away in an act of kindness will not be replaced in one's
pocket by the government, one finds that he is less inclined
to donate, then it is a personal decision, but a better
informed one. .

Andy in Fink, Texas

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"Joe-46er" <nobody[at]nospam.com> wrote:

- quote -

Contact your congressman!

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Joe-46er <nobody[at]nospam.com> wrote:

- quote -

So you think everyone should give away money EXCEPT the IRS?

If you disagree with people getting a deduction for nothing,
I certainly hope you've elected to itemize and only deduct
the $8000 you really deserve.

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Joe-46er <nobody[at]nospam.com> wrote:

- quote -

How, then, do you rationalize the fact that you got a
deduction for $1,500 MORE than you actually spent?

MTW

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Joe-46er <nobody[at]nospam.com> writes:

- quote -

I'm with you. This proposal comes up now and again in
Congress. Let your members know your thoughts (more
temperately worded than your message here).

Phil Marti
Topeka, KS

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