You're rich, now what?

If your name isn't Ramseyfan and you're wealthy, you MUST give money to others (principally people named Ramseyfan). If your name is Ramseyfan and you're wealthy, you don't have to give money to others, but if you do, others must erect statutes to hail your majesty.

The rich give to charity and get it back when taxes are filed. So it is a tax shelter for them.

The rich give to charity and get it back when taxes are filed. So it is a tax shelter for them.

In point of fact, that's not entirely true. Tax deductions for contributions aren't even close to 100%; they only get back (by virtue of the tax deducation) a portion of the money they give.

Plus, not to be incredibly obonoxious, but a tax shelter is a place where you can put money to avoid taxation. It doesn't shelter money to give it away - even if you get a portion of it back.

Well, mainly it's the hookers on Hollywood and Vine, but if I'm particularly flush one week I'll pick up the local Yellow Pages and spring for an escort. They always seem to be appreciative. Oh, and strippers.

:lol:

As corny as it sounds, we all have a part in doing what we can to help out. Some do community service. For some their job is a service to the community. Others donate food or money when they can. There are also many other ways to help out and while I don't think helping out or not helping out determines whether someone is a good person or not, being a good samaritan is never a bad thing to be. Personally I do what I can when I can, and I don't think twice about. And I agree with others in that being pressured into a charitable deed negates the purpose.

they get back 75-80% of instead of paying 45% tax then it is a image tax shelter-still a tax shelter

they get back 75-80% of instead of paying 45% tax then it is a image tax shelter-still a tax shelter

I'm not trying be obnoxious, but I don't think the above statement is accurate.

Let's say I have $10,000,000 of taxable money and I'd normally have to pay $3,000,000 for Federal income tax - so I'm left with $7,000,0000. I opt to give $500,000 to charity - leaving me with $6,500,000. I get back $400,000 (which is a very high estimate since you don't get back 80%). So, I'm left with $6,900,000. Even if you assumed I get back 80% of what you donate, I'm still out $100,000.

So I don't see how it's any kind of tax shelter, or cheating the system in the name of altruism, to give the money if I'm still out $100,000 more than I would have been without the contribution.

The only way it would be a tax shelter is if I got a tax deducation in excess of 100% of the amount I contributed.

Ramseyfan it is WAY better than paying the FULL tax on it-tax shelter no matter how you want to state it