Earlier quoted context omitted.
If something ever seems like a popular but illogical set of actions by people, the best way to understand it is to look at the incentives that drive it (thanks Freakonomics). In this case I'd wager two things. As a kid I had family who worked a receiving center for Goodwill. Fairly affluent part of our town near the beach. I remember two distinct things being odd to me then. The items people would bring would sometim…
>I was told then when I asked this was an approximate value of their donation and it was used for tax purposes. So one is probably tax write offs. Anything preventing them from just making up that figure?
Donations 5000 and up require the person you donated to to fill out a tax form for that donation so making up the numbers would require a confederate in the donating org to be willing to risk prison to enrich you.
https://www.amazinggoodwill.com/donating/IRS-guidelines
Also remember that the bottom half of the country pays little federal income tax (because they don't make much of the income in America) and the top 10-20% has MUCH better legal tax avoidance strategies.
It's likely that some portion of middle income individuals could avoid a small dollar figure in taxes by inflating or even fabricating a string of small donations and presumably out of hundreds of millions of people a few do but you would have to make up a LOT of bullshit donations to make much of a difference but before you could actually save much money you would end up sticking out like a sore thumb. Yes Mr IRS auditor I totally donated over 1000 in goods to goodwill on 10 separate occasions over 2021 and I totally deserve the corresponding $3000 deduction!
On net its probably a small issue. At this point we have people making 6 figures + who just don't file tax returns and haven't been addressed.