Wednesday, November 28, 2012

"Charitable giving reacts to tax incentives ..."

"... and in response to any limits on deductions it could even fall by about the same amount as the increase in the tax bill, according to John List of the University of Chicago, who recently reviewed the literature on this subject. Other studies have suggested an effect about half as large. Even that smaller estimate, though, suggests that limiting deductions to $50,000 a year could easily reduce giving by tens of billions of dollars."

That's former Obama administration official Peter Orszag on proposals to limit the charitable deduction.