Recent Washington Post column on effect of changing charitable deduction

From: Martin Feldstein <msfeldst_at_gmail.com>
Date: Tue, 14 Apr 2009 17:21:25 -0400

I thought you might be interested in an op ed that I wrote for the
Washington Post on the administration's proposal to cap the deduction for
charitable gifts to the 28% rate.
With an elasticity of one for giving with respect to the price of giving,
this limit would cost charities the same amount that the government gains in
revenue, leaving the net funds of the high income individuals that remain
for consumption and saving unchanged. So it is purely a tax on the
charities

You can find it at www.nber.org/feldstein/washingtonpost_032409.pdf

Marty
Received on Tue Apr 14 2009 - 17:21:25 EDT