OP you can democratise “tax” as the Americans do and make charitable donations 100% tax deductible. That’s why their Universities are so well funded. People donate to their old colleges so that they can provide scolarships.
USA donations aren’t 100% tax deductable. USA charitable donations work something like ours. If you donate say $300 your taxable income is reduced by $300. So your tax paid will be reduced by $100 if the tax rate was 33%. You are still paying the net $200 though.
To illustrate, suppose that the American Cancer Society is hosting a formal dance as a fund-raiser (the ACS is a certified charitable organization). Further suppose that the fair market value of a ticket to the dance is 75 USD, and that the donor pays 375 USD to purchase a ticket. The donor may claim only a 300 USD deduction, because the amount contributed (375 USD) is reduced by the amount of the benefit that he received (75 USD, the fair market value of the ticket). This holds true even if the donor does not actually attend the dance.
The taxable income of the donor is reduced by 300 USD. If the donor’s income was in the 35% income tax bracket both before and after the deduction, the donor’s tax liability (amount of taxes owed to the government) is reduced by 105 USD.
https://en.wikipedia.org/wiki/Charitable_contribution_deductions_in_the_United_States#Effect_of_benefit_to_donor
Much the same way we can gift aid contributions except we pay from taxed income then the charity pays it back.
Maybe Americans are just more generous?
Or maybe there are limits to gift aid but American charitable donations are without limit? Any accountants in the house.
