So McD’s asks you, when you pay, to round up the cost of your order for charity. My question is this: I’m giving the money to McD’s, not the charity. Am I then helping them get a bigger tax deduction for corporate giving? So my 18 cents they match means they get credit for a 36 cent charitable gift?
In: Economics
>So my 18 cents they match means they get credit for a 36 cent charitable gift?
No, for two reasons.
1. Even *if* they did get to do the tax deduction, they’d pass on the 18 cents and take an 18 cent deductionm not 36. With a corporate tax rate of ~21% in USA, that might come to nearly 4 cents saved on their tax bill.
2. However, they can’t even do that! Because, to my udnerstanding, you are the one giving charity, so you can claim the deduction, not them. However, it probably isn’t worth your time to compile those receipts and add up 18 cents donated here, and 83 cents donated another day, etc etc, to get some tiny fraction back in taxes.
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