Study: Ending charitable tax break could shrink economy, cost jobs

{mosads}The study found that most of the economic repercussions from eliminating that tax break would come as a result of increasing people’s taxable income, driving many into higher brackets normally avoided by charitable giving. The study does not take into account the negative impact that could come from organizations that would face hard times if charitable donations were no longer tax-deferred, such as charities, hospitals and schools, which would likely face cutbacks in services with reduced giving.

Monday’s study marks the latest from the Tax Foundation, which has been rolling out analysis of the elimination of various tax breaks. The studies come as both the House and Senate tax-writing committees are working on comprehensive reform efforts, with leaders vowing to evaluate every break in the code.