If people select efficient enough charities, the benefits might outweigh the damage of deadweight loss, and value destruction via higher taxes. The thing is, this charity tax doesn’t seem to guarantee donation matching, it just increases the likelihood hat people will donate to something.
Maybe I am being confused by ambiguity, but the situation I imagined was that the government increases income tax between 1% and 10% and that the pool of money generated by this is given back to people who donate as a tax credit. If I donate $1,000 to AMF, I get $1,000 back from the government: but no guarantee that others will donate to AMF.
If people select efficient enough charities, the benefits might outweigh the damage of deadweight loss, and value destruction via higher taxes. The thing is, this charity tax doesn’t seem to guarantee donation matching, it just increases the likelihood hat people will donate to something.
Maybe I am being confused by ambiguity, but the situation I imagined was that the government increases income tax between 1% and 10% and that the pool of money generated by this is given back to people who donate as a tax credit. If I donate $1,000 to AMF, I get $1,000 back from the government: but no guarantee that others will donate to AMF.