the COMPASSIONATE tax credit....

 do you HATE that the government gets to decide....  where your money is going to be spent....

that they TAKE more and more and more.....  of your money....  

and.... 

they decide....  what it will be spent on....

what if....

you could decide....  where your tax dollars go....

that is what the compassionate tax credit is all about....

would you be willing to contribute more....  IF....  you were able to CHOOSE where you tax dollars went....

most....  many....  people....  are willing to make donations to non-profits....  this is a similar structure....  and....  it is pretty simple....  understanding the concept....  is pretty simple....  but....  understanding the math....  is a little more complex....  and....  eye do not know....  if it is necessary to understand the math....

basically....  under the current system....  you get to take a tax deduction....  if....  you donate money to a non-profit....  and....  this is really NOT much of a perk....  it is the same thing as making less money....  if you donate a million dollars....  from a tax standpoint....  it is as if you never made a million dollars....

with the compassionate tax credit....  when you donate a million dollars....  you still get the tax deduction....  but....  you also get a tax credit....  which means....  you owe less taxes on the money that you keep....

for instance....  ok....  now here is where it gets a little more complex to follow....  so....  eye will TRY to use numbers that make it as simple as possible....

so....  for instance....  if you made one hundred thousand dollars last year....  and....  the tax rate was flat rate (you owe the same percentage no matter how much you make)....  and....  let us say the flat tax rate was twenty-five percent....  then....  you would owe twenty-five thousand dollars in taxes....  

then....  under the current system....  if you donated fifty thousand dollars....  you would only owe twelve thousand five hundred dollars in taxes....

and....  under the new system....  let us say that the tax credit is ten percent....  then....  because you donated fifty thousand dollars....  you would receive a five thousand dollar credit....  which you could use....  to lower you tax burden on the income that you retain....  so....  you would owe....  seven thousand five hundred dollars (fifty thousand times twenty five percent minus five thousand dollars)....

under the old system....  you would owe....  twelve thousand five hundred dollars....  under the new system....  you would owe seventy five hundred dollars....  with the same income....  and....  the same donation....

now....  here is where the fun begins....  it is possible....  for you to pay NO taxes in the new system....  even though you report an income....  and....  here is where the numbers get a little MORE complex....  it is easier to follow....  if the tax rate is the same percentage as the tax credit....

so....  if you earned one hundred thousand dollars last year....  and....  you donate fifty thousand dollars....  and....  the tax rate is thirty percent and the tax credit is thirty percent....  THEN....  if you donate fifty thousand dollars....  and....  you owe NO taxes on the remaining fifty thousand dollars that you keep....  because....  you OWE fifteen thousand dollars in taxes on the retained income....  AND....  you RECEIVE a fifteen thousand dollar credit from the money that you donated.....  and....  the net....  is....  zero taxes....

now....  some of you might say that this is unfair....  why should a wealthy person be able to pay no taxes on thier fifty thousand dollar retained income....  AND....  you must pay fifteen thousand dollars on your retained fifty thousand dollar income....  BUT....  the reason it is fair....  is....  because....  you can also pay NO taxes....  you can also donate HALF of your income....  you can donate twenty five thousand dollars....  and....  pay NO taxes to....

and....  this works out to be a better deal for the government as well....  because....  as long as the government gets to choose that categories that qualify for the compassionate tax credit....  the money is spent for the same public good....  BUT....  more money is spent....

in the first scenario....  if the wealthy person....  donates nothing....  they pay thirty thousand dollars in taxes....  and....  the government decides what it is spent on....  and....  in the second scenario....  the government gets nothing....  BUT....  fifty thousand dollars is spent toward the public good....  twenty thousnd dollars more....