James Wittenbach
James Wittenbach
although benefit bracket dan example federal government hurricane katrina lose marginal percent revenue rita save taxes taxpayer victims
For example, a taxpayer in the 25 percent marginal tax bracket would save $250 in taxes by making a $1,000 contribution. However, as Dan explained, although the federal government will lose $250 in tax revenue there is $1,000 going to benefit hurricane victims that the government doesn't have to spend. Put differently - the taxpayer, the federal government and the victims of hurricanes Katrina and Rita all win.