The Good, The Bad, and The Charitable

Robert Atkinson and William Dennis both critique the philanthropic tax exemption in the United States in a manner reminiscent of Augustine’s early pleas for chastity: “IRS, grant me taxation, but not yet.” Although both essays point to current problems generated by the exemption, the writers recognize that when bad policies are deeply entrenched, the exemption might serve as a coping mechanism. Each of the two essays thus sketches out an (effectively) ideal fiscal regime in which the tax exemption for charities is no more, as well as a few preliminary steps toward the author’s ideal. Dennis helpfully dubs this sort of thought experiment “Rogge’s World,” in which we consider what the merits of a policy might be in a more sensible overall policy regime.

Find the article at Conversations on Philanthropy.