A Deduction From Charity
In today’s Washington Post, in a column that was also printed elsewhere, Harvard economics professor Martin Feldstein theorized that “President Obama’s proposal to limit the tax deductibility of charitable contributions would effectively transfer more than $7 billion a year from the nation’s charitable institutions to the federal government.” He repeated the concern among some that decreasing the deductible amount of philanthropic contributions by higher income tax payers would cause them to decrease their giving.
It’s a complicated argument, but he explains it this way: (Read on …)