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Charitable contributions have a relatively lengthy history as being part of our federal income tax system for individual taxpayers. A deduction for charitable contributions has consistently been included as one of the itemized deductions that taxpayers can claim on Schedule A. The policy goal behind this deduction is a desire to encourage taxpayers to support worthwhile charitable initiatives.

Despite this long history, the deduction for charitable contributions has not been without controversy. A key question is whether the deduction is effective in providing an incentive for taxpayers to give more to charitable organizations. For one perspective on the effectiveness of the provision, read the following viewpoint about the impact of the Tax Cuts and Jobs Act on giving: https://taxfoundation.org/tax-cuts-jobs-act-affect-charitable-giving/

Alternatively, Congress expanded the deduction for charitable contributions to allow taxpayers who took the standard deduction to a take a limited deduction for charitable contributions for 2020 and 2021, suggesting that they believe it is an effective incentive. Do you believe that allowing charitable contributions to be deductible for federal income tax purposes is an effective incentive or do you believe that it should be eliminated? Explain the reasoning for your recommendation.

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