Expecting a Tax Cut Next Year? Spend It on Others
If you agree and are lucky enough not to need your tax winnings for yourself, perhaps you can find a way to support a cause
that helps people who have been left behind by the improving American economy for whatever reason.
If you believe the Republican theory that these tax cuts will stoke more economic growth, you can
help make it so by spending any extra money in a way that directly improves the American economy.
If you don’t employ anyone at the moment, hiring occasional part-time help to buy back your own time may contribute to
greater personal happiness, as a recent study showed, in addition to putting more money in someone else’s pocket.
Before you consider which charities you might want to give your newfound tax winnings, you’ll probably think about a tax change
that could affect philanthropy directly: the increase in the standard deduction.
The more comfortable among us, however, ought to consider a less obvious course of action: Give the money back.
Please note, however, that if you want to use the money to try to run your least favorite politician out of office,
your campaign contributions are not tax deductible even if you are still able to itemize your charitable donations
Their executives work for shareholders after all, so the default reflex may well be to use winnings from the new, lower
corporate tax rates to buy back shares or do other things that will lift stock prices directly and immediately.