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Reassessing the Tax-Favored Status of the Charitable Deduction for Gifts of Appreciated Assets

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Listed:
  • O'Neil, Cherie J.
  • Steinberg, Richard S.
  • Thompson, G. Rodney

Abstract

A study on how the tax-favored status of charitable donations of appreciated property affects charitable behavior. Finds that only wealthy donors (whose positive income exceeds $200,000) are responsive to the tax incentive, and argues that the tax incentives should be reassessed.

Suggested Citation

  • O'Neil, Cherie J. & Steinberg, Richard S. & Thompson, G. Rodney, 1996. "Reassessing the Tax-Favored Status of the Charitable Deduction for Gifts of Appreciated Assets," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(2), pages 215-233, June.
    • Handle: RePEc:ntj:journl:v:49:y:1996:i:2:p:215-33
    DOI: 10.1086/NTJ41789198
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    References listed on IDEAS

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    1. Auten, Gerald E. & Cilke, James M. & Randolph, William C., 1992. "The Effects of Tax Reform on Charitable Contributions," National Tax Journal, National Tax Association, vol. 45(3), pages 267-90, September.
    2. Clotfelter, Charles T, 1980. "Tax Incentives and Charitable Giving: Evidence from a Panel of Taxpayers," Empirical Economics, Springer, vol. 13(3), pages 319-340, June.
    3. Lankford, R Hamilton & Wyckoff, James H, 1991. "Modeling Charitable Giving Using a Box-Cox Standard Tobit Model," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 460-470, August.
    4. Auten, Gerald E. & Cilke, James M. & Randolph, William C., 1992. "The Effects of Tax Reform on Charitable Contributions," National Tax Journal, National Tax Association;National Tax Journal, vol. 45(3), pages 267-290, September.
    5. Clotfelter, Charles T., 1980. "Tax incentives and charitable giving: evidence from a panel of taxpayers," Journal of Public Economics, Elsevier, vol. 13(3), pages 319-340, June.
    6. Feldstein, Martin S & Taylor, Amy, 1976. "The Income Tax and Charitable Contributions," Econometrica, Econometric Society, vol. 44(6), pages 1201-1222, November.
    7. Clotfelter, Charles T., 1985. "Federal Tax Policy and Charitable Giving," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226110486, August.
    8. Auten, Gerald E. & Rudney, Gabriel G., 1986. "Tax reform and individual giving to higher education," Economics of Education Review, Elsevier, vol. 5(2), pages 167-178, April.
    9. Harry Watson, 1984. "A Note on the Effects of Taxation on Charitable Giving Over the Life Cycle and Beyond," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(3), pages 639-647.
    10. Reece, William S & Zieschang, Kimberly D, 1985. "Consistent Estimation of the Impact of Tax Deductibility on the Level of Charitable Contributions," Econometrica, Econometric Society, vol. 53(2), pages 271-293, March.
    11. Slemrod, Joel, 1989. "Are Estimated Tax Elasticities Really Just Tax Evasion Elasticities? The Case of Charitable Contributions," The Review of Economics and Statistics, MIT Press, vol. 71(3), pages 517-522, August.
    12. Richard STEINBERG, 1991. "Does Government Spending Crowd Out Donations?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 62(4), pages 591-612, October.
    13. Choe, Yook S. & Jeong, Jhook, 1993. "Charitable Contributions by Low-and Middle-Income Taxpayers: Further Evidence With a New Method," National Tax Journal, National Tax Association, vol. 46(1), pages 33-39, March.
    14. Choe, Yook S. & Jeong, Jhook, 1993. "Charitable Contributions by Low-and Middle-Income Taxpayers: Further Evidence With a New Method," National Tax Journal, National Tax Association;National Tax Journal, vol. 46(1), pages 33-39, March.
    15. Charles T. Clotfelter, 1985. "Federal Tax Policy and Charitable Giving," NBER Books, National Bureau of Economic Research, Inc, number clot85-1.
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    Cited by:

    1. Enrique Fatas & Joo Young Jeon & Paloma Ubeda, 2019. "An Experimental Investigation of Charity Rebates," Economics Discussion Papers em-dp2019-12, Department of Economics, University of Reading.
    2. Borgloh, Sarah, 2008. "What Drives Giving in Extensive Welfare States? The Case of Germany," ZEW Discussion Papers 08-123, ZEW - Leibniz Centre for European Economic Research.
    3. Amee Kamdar & Steven Levitt & John List & Brian Mullaney & Chad Syverson, 2015. "Once and Done: Leveraging Behavioral Economics to Increase Charitable Contributions," Natural Field Experiments 00775, The Field Experiments Website.
    4. Yermack, David, 2009. "Deductio' ad absurdum: CEOs donating their own stock to their own family foundations," Journal of Financial Economics, Elsevier, vol. 94(1), pages 107-123, October.

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