Abstract
The standard deduction serves two important functions, but also has two serious flaws. On the one hand, it simplifies computation of tax liability and lessens the tax burden of moderate income persons. On the other hand, it increases the extent to which arbitrary factors determine federal income tax liability and generally deprives low and middle income persons of any benefits from itemized deductions. The most troubling consequence of the standard deduction is that it systematically deprives most moderate income persons of any tax benefit from charitable contributions. Therefore, charities to which high income persons contribute are effectively subsidized, while those to which low and middle income persons contribute are treated less generously." If Congress does not make more extensive changes to the standard deduction, it should at least amend the Internal Revenue Code so that individuals can deduct charitable contributions even if they use the standard deduction. This proposal would restore the law to what it was in 1986. A second recommendation is that the additional standard deduction for elderly or blind persons be replaced with direct tax relief, since the standard deduction is not a satisfactory method of providing tax relief to those who are most needy.
Recommended Citation
Samansky, Allan J.
(1991)
"Nonstandard Thoughts About the Standard Deduction,"
Utah Law Review: Vol. 1990:
No.
3, Article 1.
Available at:
https://dc.law.utah.edu/ulr/vol1990/iss3/1