I am not here to point a finger at Democrats and other Liberals to say “you have wrecked charitable giving with the fiscal cliff deal.” This may surprise the very few liberal readers in my audience. Truth is, one’s charitable giving is shaped more by one’s perception of the benefit of charitable giving to the “end user” than it is tax law. In my particular case I have progressively lowered charitable giving to U.S. based charities over a decade as business focus shifted from the United States to other locales. In addition to that, I personally am a firm believer in the concept known as “don’t feed the monster.”
The “don’t feed the monster” concept means I have all but completely wiped out U.S. generated and U.S. taxable income so there simply is little cash sitting in any U.S. asset from which to disperse to charitable organizations. The single greatest effect of the fiscal cliff deal in regards to charity on my part is the inheritance tax as established. What I had planned to flow to charities will not be in place to flow through any U.S. based probate of assets.
Unfortunately many Americans also see “charity” as cash or services provided to indigent or sometimes not so indigent individuals. This allows the formation of a good argument when someone like Barack Obama runs through another of his awe inspired tirades against over achievers. It assists he and his ilk in the promotion of larger and ever more consuming government. Never allow an opportunity to go to waste. 🙂 Reality is large sums of wealth are transferred to entities such as museums, symphony orchestras and a whole host of organizations that are not per se involved in support of the individual who cannot or perhaps can provide for self. Where do you think these institutions sit in the political spectrum?
All I can say with certainty is I have no idea how the giving totals will tally in 2013 for the good ole’ USA. This is one billionaire who believes:
“Don’t feed the monster.” Let him starve.