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Charitable Contributions And Tax Benefits Unfortunately, Much Essay

Charitable Contributions and Tax Benefits Unfortunately, much of the elite of the upper class are afforded leeway and loopholes on tax obligations that allow them to pay much less percentage wise than other taxpayers in different income brackets. Much of this is due to the ability to use tax deductions, like charitable contributions in large amounts, to lower their annual personal incomes before taxes. However, many of the top contributors to charity donate above the maximum allowances for charitable deductions, showing a clear resolution to give based on ethics, rather than for the sole purpose of tax deductions alone,

Bill Gates is currently one of the top money makers in the world, yet he is also one of the largest contributors to charitable institutions as well. The amounts of donations Bill Gates contributes to various charities, including his own charitable foundation, is well over the top end limit of what is allowed for tax credits regarding donations to charity. He often donates above the 50% limit on cash contributions. In fact, through his charitable foundation, Gates is one of the largest private donators to philanthropic causes. Some reports show that Gates contributes around 66% of his net income to charitable causes (Mail Foreign Service 2010). In 2010, he pledged $10 billion in order to help allocate funs for research and distribution of children's vaccines across the globe. Here, the research states that "the Microsoft founder hopes the money, to be spent over the next ten years through his foundation, will save the lives of more than...

This was the single largest donation that had ever been made by an individual to a charitable cause. Thus, it is clear that Gates is making donations, not necessarily for tax deductions alone, but for the ethical purpose of helping those who are less fortunate. In this regard, it is obvious he will continue to donate. It is my advice to make sure these large donations, which are to be spent over a long breadth of time, are properly itemized, so that Gates maximizes his appropriate tax deductions.
Warren Buffet is another major philanthropist that gives away enormous amounts of funds to various charities. Overall, out of the 64,855,038 Buffett made in 2010, he only had a taxable income of $39.814.784 (Kim 2011). Only 17.4% of his taxable income was actually paid to the IRS in taxes (Kim 2011). Charitable donations were one of the top tax deductions claimed by Buffett in his 2010 tax returns, along with business expenses and state taxes. In fact, Buffett donated $3.27 billion in 2010, over half of his income for that year (Kim 2011). This far exceeds the maximum amount allocated by the IRS for donations, and so Buffett was giving even after it stopped being a benefit to his own estate. This is attributed to his philosophy on the upper class' role in the economy. According to the research, "Buffett has argued that the wealthy do not pay their fair share of taxes compared to the middle-class," (Kim 2011). He has been taking an ethical stance to increase the amount of taxes…

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References

Kim, Susana. (2011). Warren Buffett reveals 'billionaire friendly' tax return. ABC News. Web. http://abcnews.go.com/blogs/business/2011/10/warren-buffett-reveals-billionaire-friendly-tax-return/

Jacob, Deborah. (2011). Charitable giving by Steve Jobs may forever remain a mystery. Forbes. Web. http://www.forbes.com/sites/deborahljacobs/2011/10/06/charitable-giving-by-steve-jobs-may-forever-remain-a-mystery/

Mail Foreign Service. (2010). Bill Gates makes the world's biggest ever single charitable donation worth 6.2 billion pounds for vaccines for children. Mail Online. Web. http://www.dailymail.co.uk/news/article-1247067/Bill-Gates-makes-worlds-largest-charitable-6bn-vaccines-poor-children.html

Squatriglia Chuck & Espinosa-Solis, Suzanne. (2000). Intel co-founder sets up $5 billion foundation: Gordon Moore Foundation. San Francisco Chronicle. Web. http://www.mindfully.org/Reform/Intel-Gordon-Moore-Foundation.htm
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