Death Tax and Church Donations

This post was written by marc on August 14, 2004
Posted Under: Religion

Now that the death taxes have been eliminated for the super rich – I was wondering if this has cut into charatable donations from estates that uned to be used to reduce the tax burden. Has this hurt church donations?

Reader Comments

that’s for sure. i’m curious to know how much wealth they accumalate yearly…

#1 
Written By charlie chingas on August 19th, 2004 @ 9:28 am

You will never know.

#2 
Written By THE TRUTH on August 19th, 2004 @ 9:49 am

Just another article on taxation. This is from a paper written by Maurice P. McTigue who is a former member of the New Zealand Parliment.

When we in New Zealand looked at out revenue gathering process, we found the system extremely complicated in a way that distorted business as well as private decisions. So we asked ourselves some questions: 1) Was our tax system concerned with collecting revenue? 2) Was it concerned with collecting revenue, and delivering social services? 3) Or was it concerned with collecting revenue, delivering social service and changing behavior, all three? We decided that the social services and behavioral components didn’t have any place in a rational system of taxation. So we resolved that we would have only two mechanisms for gathering revenue, a tax on income and a tax on consumption, and that we would simplify those mechanisms and lower the rates as much as we possibly could.

We lowered the high income tax rate from 66% to 33%, and set that flat rate for high-income earners. In addition, we brought the low end down from 38% to 19%, which became the flat rate for low-income earners. We then set a consumption rate of 10% and eliminated all other taxes, capital gains taxes, property taxes, etc. We carefully designed this system to produce exactly the same revenue as we were getting before and presented it as a zero some game. But what actually happened was that we received 20% more revenue than before. Why? We hadn’t allowed for the increase in voluntary compliance. If tax rates are low, taxpayers won’t employ high priced lawyers and accountants to find loopholes.

Indeed, every country that I’ve looked at in the world that has dramatically simplified and lowered its tax rates has ended up with more revenue, not less.

CHEW ON THAT!

#3 
Written By THE TRUTH on August 20th, 2004 @ 8:43 am

kinda sticks to the roof of my mouth, like peanut butter. interesting article. but if the taxes are lowered, how will the governemt be able to ‘fund’ certain sections of the government? personally, i like the idea of lower taxes.

#4 
Written By charlie chingas on August 20th, 2004 @ 9:24 am

He told you, compliance. Charlie, drug dealers make millions, and they do not pay income taxes. But they buy things. High end priced nice things. If you cannot get them to pay taxes let’s get them when they are out buying $60,000 SUVs, and buying 26 inch rims at $6,000, and buying seven TV screens for the back each head rest at $8,000. MORE people would actaully pay LESS taxes and you would make the difference up in VOLUME

#5 
Written By THE TRUTH on August 20th, 2004 @ 9:55 am

PLUS, some sections of the government should not be funded. The US Constitution says that the only thing that the US Government is legally allowed to provide is freedom and defense. ALL other things are to be provided for at the state level. And we all know that the more local this stuff gets the better it is to manage.

#6 
Written By THE TRUTH on August 20th, 2004 @ 9:58 am

yeap, it sure is. but we, as people, have become so complacent that we have quietly allowed the goverment to managae almost every part of our lives. less gonvernment at the federal level. then some people would say that the feds needs to have guidelines for certain things, i.e. pollution, land management, etc. then we go again with the government managing our lives. it’s a vicious circle that we need to get ourselves out of.

#7 
Written By charlie chingas on August 20th, 2004 @ 10:22 am

Wills, I went back and read my post again. It says that they set the consumption tax rate at 10%, I think that answers your question. And believe it or not a consumption rate set at 10% is progressive. Here is how, if you buy a Ford for $30,000 you pay 10%, or $3,000. If I buy a $70,000 BMW, I pay $7,000. WALLA … progressive. A flat rate would be if they said the tax was $3,000 on ALL cars, regardless of the price.

#8 
Written By TOMOCIUS on August 22nd, 2004 @ 2:39 pm

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