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Unless there's actual corruption involved (like giving to a "charity" that actually fuels your personal expenses), how could a deductible gift be used a tax loophole?

I've heard the misconception that one could use a deduction to bump yourself into a lower tax rate on your entire income, and therefore come out ahead, but that's not how U.S. federal income tax rates work.



Donate to a selective school, and your descendants get higher probability of admission.


It's like the government is matching your donations, and in the case of certain charities, that means the government is effectively funding lobbyists for you.

"Loopholes" are often in the eye of the beholder.





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