Two of the key reasons I’m a fan of tax deductibility is because it’s a clear signal about whether something is a charity, and because it’s a behavioral incentive to donate—people feel like they are getting something from donating. (Never mind the fact that they are spending—it’s the same cognitive effect when people feel like they “saved money” by buying something they don’t need on sale.)
On the other hand, I think Rob Reich is right about this, and we’d be better off switching to a system that doesn’t undermine our taxation system generally—though tax deductibility is far from the only culprit, and if this is a single change, the other loopholes are less publicly beneficial as side effects, so I would guess it’s a net negative unless coupled with broader reform. Note that I haven’t read Rob’s latest book, (he is an incredibly fast writer!) and maybe he talks about this. If not, I’d be interested in asking him for his take.
Given all of this, I don’t have a strong take on this—and short of general reform, I’d at least be in favor of expanding tax credits for EA charities, so that they aren’t relatively disadvantaged as places to give.
Agreeing with others that this is a good question—and it’s not simple. (Because, of course, policy debates should not appear one-sided!)
Two of the key reasons I’m a fan of tax deductibility is because it’s a clear signal about whether something is a charity, and because it’s a behavioral incentive to donate—people feel like they are getting something from donating. (Never mind the fact that they are spending—it’s the same cognitive effect when people feel like they “saved money” by buying something they don’t need on sale.)
On the other hand, I think Rob Reich is right about this, and we’d be better off switching to a system that doesn’t undermine our taxation system generally—though tax deductibility is far from the only culprit, and if this is a single change, the other loopholes are less publicly beneficial as side effects, so I would guess it’s a net negative unless coupled with broader reform. Note that I haven’t read Rob’s latest book, (he is an incredibly fast writer!) and maybe he talks about this. If not, I’d be interested in asking him for his take.
Given all of this, I don’t have a strong take on this—and short of general reform, I’d at least be in favor of expanding tax credits for EA charities, so that they aren’t relatively disadvantaged as places to give.