Should Egalitarians Expropriate Philanthropists?
AbstractWealthy individuals often voluntarily provide public goods that the poor also consume. Such philanthropy is perceived as legitimizing one’s wealth. Governments routinely exempt the rich from taxation on grounds of their charitable expenditure. We examine the normative logic of this exemption. We show that, rather than reducing it, philanthropy may aggravate absolute inequality in welfare achievement, while leaving the change in relative inequality ambiguous. Additionally, philanthropic preferences may increase the effectiveness of policies to redistribute income, instead of weakening them. Consequently, the general normative case for exempting the wealthy from expropriation, on grounds of their public goods contributions, appears dubious.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6362.
Date of creation: Jun 2007
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Other versions of this item:
- Dasgupta, Indraneel & Kanbur, Ravi, 2008. "Should Egalitarians Expropriate Philanthropists?," IZA Discussion Papers 3317, Institute for the Study of Labor (IZA).
- Indraneel Dasgupta & Ravi Kanbur, 2006. "Should Egalitarians Expropriate Philanthropists?," CEDI Discussion Paper Series 06-11, Centre for Economic Development and Institutions(CEDI), Brunel University.
- Dasgupta, Indraneel & Kanbur, Ravi, 2007. "Should Egalitarians Expropriate Philanthropists?," Working Papers 126999, Cornell University, Department of Applied Economics and Management.
- Indraneel Dasgupta, & Ravi Kanbur, . "Should Egalitarians Expropriate Philanthropists?," Discussion Papers 07/13, University of Nottingham, CREDIT.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-07-07 (All new papers)
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