Because the home mortgage interest deduction is available only to itemizers
, merely 54% of homeowners who pay mortgage interest receive a tax benefit.
The provision that allowed itemizers
to deduct charitable contributions expired in 1987, and nonitemizers could no longer deduct any charitable contributions, though recent discussions on Capitol Hill have raised the possibility of reinstating the nonitemizer charitable deduction.
As the sample size is relatively modest and because these coefficients are statistically significant and larger with a different itemizer
assignment (see Appendix C), I do not discount these as essentially zero estimates.
Those States with relatively higher per capita incomes are also the States in which the proportion of itemizers
is relatively the highest.
are indexed for inflation, "standard deduction creep" eliminated the conversion of nonitemizers to itemizers
caused by inflation.
Some regional giving reports utilize different methods, including controlling for factors associated with giving, to obtain a more accurate picture of regional giving trends than itemizer
data alone can provide.
If leaders at Independent Sector had their way, "there would be no floor and we wouldn't be touching itemizers
," Aviv said.
where I = 1 for itemizers
and 0 otherwise, t is the marginal tax rate, [[tau].
Second, assuming that the activities for which itemized deductions are allowed do not have social benefits that justify their favorable tax treatment, then a reduction in the number of itemizers
reduces the economic distortions resulting from these tax preferences.
Obama's plan would cap at 28 per cent the value of deductions -- for charitable contributions, payment of state taxes and the like -- that itemizers
use to lower their tax bills.
Assuming that the effect for non-itemizers
is similar to the effect found for itemizers
, the total cost in charitable contributions would be $2.
In recent years, itemizers
have had the option of deducting state and local sales taxes paid, rather than state and local income taxes.