Politics Is Showing That People Will Give Generously, Without a Tax Deduction

If it is true that people vote with their wallets, then they have been voting in record amounts this campaign season. According to Open Secrets, presidential candidates—including those who lost in the primaries—have raised a collective $1.5 billion so far this cycle. Since entering the race just a few weeks ago, Vice President Kamala Harris alone has raised more than $540 million. Candidates for the House and the Senate have raised a combined $2.5 billion.

The takeaway here is not that there is too much money in politics (everyone has their own views on that). No, the 2024 race is teaching us that people will give generously to causes they believe in—and they don’t need a tax deductionA tax deduction allows taxpayers to subtract certain deductible expenses and other items to reduce how much of their income is taxed, which reduces how much tax they owe. For individuals, some deductions are available to all taxpayers, while others are reserved only for taxpayers who itemize. For businesses, most business expenses are fully and immediately deductible in the year they occur, but others, particularly for capital investment and research and development (R&D), must be deducted over time. to induce them to give.

As lawmakers look to renew or revise the 2017 taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. cuts that expire next year, they should reconsider the need for a charitable tax deduction in the tax code.