What is a Charitable Donation...

Does it matter who gets the money? As long as it is a non-profit does it count? Former Secretary of Labor Robert Reich has an interesting take on these ideas in his blog from this past Wednesday. I am not sure where he got his numbers, but if true they are incredible. Out of an estimated $200 billion dollars that will be donated this year to charity only about 10% will be directed at the poor? And yet the wealthy will still get full credit on their taxes. Talk about a loophole. Culture is important and should be supported, but does it need a tax credit too? Does anyone really think the wealthy will stop donating to their favorite museums or universities unless they get to write if off of their taxes?

This brings up another issue also. I pay taxes. The government gives subsidies to the poor now. So I am already donating to the poor through my taxes. Now I know the government does not help out the poor that much. And seeing Bush veto expanding health care coverage to poor children is just another example. I wonder though how much the rest of us are supposed to pick up the slack. Does the government plan on private citizens and businesses picking up a certain percentage of the tab when it decides how much to help the poor? Who should pay? Should anyone? All difficult questions and I wish we knew the answers...