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Americans Value Gift Tax Deduction

IRS logoAccording to a survey released from Grey Matter Research (Phoenix, Arizona), most Americans think that removing the charitable deduction would decrease giving to non-profit organizations. Grey Matter Research surveyed a sample of American adults regarding the consequences if charitable gifts were no longer tax deductible. Only 30% feel there would be no real change in giving in the U.S. Six percent believe charitable donations would actually rise. However, almost two-thirds of Americans say charitable giving in the U.S. would decrease, including 29% who believe it would decrease a little, and 36% who believe it would decrease a lot. President Obama and some members of Congress have advocated a reduction or elimination of the charitable deduction.

While the issue of reducing or eliminating charitable deductions has become a political hot-potato, the view of Americans surveyed did not differ much based on political party or perspective. Sixty-three percent of Republicans, 68% of independents, and 61% of Democrats believe charitable giving in this country will decrease if contributions are no longer tax deductible. Similarly, this is the perspective among 62% of those who identify themselves as politically conservative, 62% of self-described moderates, and 72% of political liberals. 

More complete data from these questions is available at http://www.greymatterresearch.com/index_files/Deductions.htm.