Opinion: Charitable Deduction Does Little To Motivate Giving

Republican economist Bruce Bartlett continues his critical assessment of the tax deduction for charity donations in an online opinion article for The New York Times.

Following up on his post last week in the Times’ Economix blog, the one-time Reagan and George H.W. Bush administration adviser asserts that tax considerations play little role in donation decisions. He notes that a significant amount of giving is done by people who get no tax benefit from doing so, and that giving by the wealthy has increased even as income-tax rates have dropped, devaluing deductions.

Most nonprofit groups get the bulk of their revenue from services provided rather than donations, Mr. Bartlett adds, among other factors he says Congress should consider in reviewing charitable tax breaks as part of any fundamental tax reform.