Should Volunteer Time Be Tax Deductible?

Volunteer time that is tax deductible is intrinsically able to provide incentive for individuals to volunteer in addition to assisting potential increases in GDP, mental and physical health, and improve cultural and socio-economic factors important to a nation, economy and culture. In other words, tax-deductible volunteerism in the form of time spent volunteering or working as a volunteer, could facilitate a significant positive influence financially and nationally.

There are several variables to consider when weighing the benefits and disadvantages of tax deductible volunteer work. Specifically, what are the costs to the government if any, how volunteer work increases GDP, why it can improve health and what benefits to culture and socio-economic standing it can have. The remainder of this article illustrates these issues and factors to demonstrate shy tax deductions to volunteer time are a good idea.

Increases to Gross Domestic Product:

Gross domestic product is the total value of all goods and services generated by a nation for a specific year. In the United States the GDP for 2006 was $13.2 Trillion (www.worldbank.org) An increase in volunteer work especially among the retiring baby boomer population could keep the workforce healthy and strong albeit through a transformed mechanism. It would be a waste to throw away the willingness, knowledge and ability of an experienced generation.

Cost to the Government:

A tax deduction for volunteer time would not cost the Government money because the volunteer time itself would increase Gross Domestic Product (GDP) and indirectly lower other government expenses to a greater degree than the tax deductions cost.