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How
will the FairTax affect charitable giving?
The FairTax will allow people to make charitable contributions out
of pre-tax dollars. With more money to spend, more people will give.
Most taxpayers today cannot deduct their contributions, and only
the relatively few who itemize may deduct their contributions with
after-tax payroll dollars. For those generally less affluent taxpayers
who do not itemize, the cost of charitable giving will actually
go down under the FairTax, because they will be able to make contributions
from pre-tax dollars.
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