Assume you work in Cali and make at least 170k gross. Assume your company does 1:1 donation match up to 6k (standard G policy). Remember that donations are tax deductible. The total marginal income tax in Cali at 170k is 32+9.3 (fed+state) = 41.3% $6000 * 0.587 = $3522 Therefore, if you choose to give up just $3522 in post-tax money, you can have a total charitable impact of $12,000 😮😮 There is such an insanely compelling quantitative incentive to donate $3522 that you'd either have to be ignorant of the math, pathologically irrational or a complete miser to forgo your company's donation match each year.
I hope people have heard of the analogy of a child drowning in a shallow pond while u don't save the children cuz u are wearing a $2000 shoes. Edit: I don't understand the defensive posture so many (almost all) are taking in comments below. If you don't want to donate. Then don't. No one is calling anyone less moral for not donating. Why so defensive?
For those who aren't familiar, I'd suggest they read "lives you can save" by peter singer.
Some people need those $3522 for themselves, but yes, it is very efficient tax wise
I can understand some people do. But also more often than not that necessity is misplaced.
A few ideas: Many of us are trying to save up for a down payment on a house, which takes multiple years to build up in the bay area. It can be hard to save enough to get there without cutting all discretionary spending. Alternatively, if you can invest an extra $3522 per year in your early work career (ex: while in your 20s), the compounding returns make that a very significant contribution by retirement. If you're in your 40s or 50s, the impact to your retirement fund is much smaller since you don't have to forego as many years of compounding returns, so it's less painful to forego. With the extremely high cost of housing and long work hours + high pressure in the bay area (which can make it difficult to work until your 60s), I can see merit to both reasons to cut as much discretionary spending as you can, even when it's for a good cause like charity donations. Then it comes down to personal priorities, not necessarily being uninformed.
No wonder you work at IBM...just have to be absurd enough to call others idiot
Don't you have to choose itemize deduction to deduct the donation for tax return? Under Trump's new tax law, itemized deductions don't make sense for most people anymore
Trump is a temporary phenomenon. When Dems win, there is no way they're keeping that tax bill as the SALT limit pretty much seems to exist to target people in blue states.
The only idiot here is the one telling others how they should spend their money.
I don’t believe in charity. Most of these charities misuse the money. I rather give money to my loved ones and people close to me that I actually know.
Sure but the point is that the multiplier that you're giving up makes it almost an irrational decision to not be charitable, even if you think that charities are highly inefficient. You'd rather make an extra $293.5 per month than give $1000/month to charity? Surely there's something that you believe in. Food banks, shelters, universities/research grants, religious institutions, disaster aid, planting trees.
Thanks for responding with class. Maybe there is. But I just don’t have the time to research something I believe in. Charity to me just sounds scammish. If I give my mom $200 I know it can really help her
[[ Why you’re an idiot if you don’t max out your company’s charitable donation match. ]] ➡️ Why you’re the idiot if you don’t know how to refrain from pushing your values and beliefs onto others. OP you can donate your entire TC to charity, and you’ll still be a POS. Rare accomplishment, congratulations!
Rationality is not a belief.
If one were to boil your post down to a rational statement it would look like so: “If you make $170K, then $6,000 pre tax is $3,522 post tax, which is less than 2 x $6,000.” The rest of the statement puts you in the same camp with those who hurt people who don’t share their faith.
You're an idiot if you pay > 10% in taxes.
Got any tips?
Be homeless and in poverty?
I gave my charity to Trump election
Yes, because it's $6k off the "top" only.