Senator Booker’s Costly Standard Deduction Proposal Would Reduce Charitable Giving
Alex Brill and Kyle Pomerleau | AEIdeas
Senator Cory Booker (D-NJ) recently proposed a bold tax plan that includes drastically increasing the standard deduction from $16,100 to $37,500 for single filers ($32,200 to $75,000 for married couples filing jointly). Senator Booker’s plan would also expand the child tax credit and the earned income tax credit and offset the cost of these tax cuts by raising taxes on businesses. By our estimation, this standard deduction increase would modestly improve filing complexity for a small number of households but would significantly reduce tax revenue and charitable giving.
