THE IMPACT OF TAX PRICE CHANGES ON CHARITABLE CONTRIBUTIONS TO THE NEEDY.

Eliminating or reducing the federal charitable deduction can have serious impacts on the level of charitable donations. Tax price elasticity estimates from a multivariate sample selection model indicate that changing the deduction to a 12% tax credit would have reduced individual donations in 2012 b...

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Publicado en:Contemporary Economic Policy Vol. 35; no. 1; pp. 113 - 125
Autores principales: Zampelli, Ernest M., Yen, Steven T.
Formato: Artículo
Publicado: Wiley-Blackwell Jan2017
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: THE IMPACT OF TAX PRICE CHANGES ON CHARITABLE CONTRIBUTIONS TO THE NEEDY.
      aug:
        au:
          Zampelli, Ernest M.
          Yen, Steven T.
        affil:
          Professor, School of Business and Economics, The Catholic University of America, Washington DC, 20064
          Senior Economist, STY Health Econometrics, Knoxville TN, 37931
      su:
        United States
        Fiscal policy
        Taxation
        Charitable giving
        Foreign exchange rates
        Tax rates
      sug:
        subj:
          Fiscal policy
          Taxation
          United States
          Public Finance Activities
          Charitable giving
          Foreign exchange rates
          Tax rates
      ab: Eliminating or reducing the federal charitable deduction can have serious impacts on the level of charitable donations. Tax price elasticity estimates from a multivariate sample selection model indicate that changing the deduction to a 12% tax credit would have reduced individual donations in 2012 by 18.9% if applied to itemizing taxpayers and by 10.5% if extended to nonitemizers. Elimination of the deduction would have led to a 35% reduction in individual charitable donations. Even if coupled with cuts in marginal tax rates, eliminating the charitable deduction will still likely result in substantial reductions given the inelastic income elasticities of charitable donations. The estimates justify the ardent opposition of many in the nonprofit sector to the more radical proposals for changing the tax treatment of charitable contributions. ( JEL D34, C34)
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    language: English
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