Economists Predict Drop in Giving on “Giving Tuesday”
Charitable giving this holiday season could drop as a gridlocked Congress scrambles to renew tax breaks for thousands of individuals and businesses. Local economists are predicting a dampened spirit of giving on “Giving Tuesday.”
Every year, consumers across the country take a break from shopping carts and wishlists to donate to charitable causes. But today could be different, as Congress decides whether to extend several individual and corporate tax breaks–all of which are on the verge of expiration.
Local economist Hank Fishkind says the tax cuts make “Giving Tuesday” possible.
“If Congress fails to extend those tax cuts, there’s going to be a very significant negative effect on charitable contributions because people won’t receive the same tax benefit that they used to receive,” he says.
According to Fishkind, the longer the tax benefits lapse, the harder the impact will be on charitable donations to non-profit organizations.
Congress has set its deadline to determine a tax break extension for December 11th.
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