Is charitable giving by nonitemizers responsive to tax incentives? New evidence.: An article from: National Tax Journal

This digital document is an article from National Tax Journal, published by National Tax Association on June 1, 1999. The length of the article is 6255 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: Was nonitemizer giving responsive to the 1982-6 "above-the-line" tax deduction provided for in the 1981 Economic Recovery Tax Act? Here, a Tobit model is applied to Treasury Individual Tax ModeI file data for 1985 and 1986 to estimate the price elasticity of nonitemizer giving. Nonitemizer giving is found to be price-responsive. The responsiveness is, however, smaller than that for itemizer giving (at least for 1986 when the nonitemizer deduction was fully phased in), suggesting diminishing returns from extending the itemizers-only deduction to nonitemizers. These findings also question whether the nonitemizer deduction can be touted as a highly efficient tax subsidy.

Citation Details
Title: Is charitable giving by nonitemizers responsive to tax incentives? New evidence.
Author: Christopher M. Duquette
Publication:National Tax Journal (Refereed)
Date: June 1, 1999
Publisher: National Tax Association
Volume: 52 Issue: 2 Page: 195(1)

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