coldfish Wrote:
Dec 13, 2012 7:06 PM
The article was actually about people using non-profits to bypass the taxes. For example, my child's preschool is a non-profit. You can pay the tuition, or you can make a "donation" of a slightly higher amount and they'll void your tuition statement. I donate 4k to them instead of the 3.5k tuition, I save money and it doesn't make a difference to them, but the government loses about $500 in revenue. The plan was to continue to allow that, but if your earnings are over 200k, then you can only deduct 28% of that "donation". So, the attempt was to stop people with a lot of money from abusing non-profits to avoid taxes, while letting the rest of us continue. Or, it's a secret muslim communist plot....