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Further Evidence on the Dynamic Impact of Taxes on Charitable Giving

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  • Barrett, Kevin S.
  • McGuirk, Anya M.
  • Steinberg, Richard S.

Abstract

Estimates the impact of taxes on donations based on dynamic specifications and data on a large panel of middle-class taxpayers followed over a period of time that included two major tax reforms (1979-1986). Finds that taxes determine both the long-run level and the timing of donations. Challenges the view that tax deductions for charitable giving are efficient.

Suggested Citation

  • Barrett, Kevin S. & McGuirk, Anya M. & Steinberg, Richard S., 1997. "Further Evidence on the Dynamic Impact of Taxes on Charitable Giving," National Tax Journal, National Tax Association;National Tax Journal, vol. 50(2), pages 321-334, June.
    • Handle: RePEc:ntj:journl:v:50:y:1997:i:2:p:321-34
    DOI: 10.1086/NTJ41789261
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    References listed on IDEAS

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    1. Auten, Gerald E. & Burman, Leonard E. & Randolph, William C., 1989. "Estimation and Interpretation of Capital Gains Realization Behavior: Evidence From Panel Data," National Tax Journal, National Tax Association;National Tax Journal, vol. 42(3), pages 353-374, September.
    2. Barrett, Kevin S., 1991. "Panel-Data Estimates of Charitable Giving: A Synthesis of Techniques," National Tax Journal, National Tax Association, vol. 44(3), pages 365-81, September.
    3. Auten, Gerald E. & Burman, Leonard E. & Randolph, William C., 1989. "Estimation and Interpretation of Capital Gains Realization Behavior: Evidence from Panel Data," National Tax Journal, National Tax Association, vol. 42(3), pages 353-74, September.
    4. 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.
    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. Clotfelter, Charles T., 1985. "Federal Tax Policy and Charitable Giving," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226110486, December.
    7. Barrett, Kevin S., 1991. "Panel-Data Estimates of Charitable Giving: A Synthesis of Techniques," National Tax Journal, National Tax Association;National Tax Journal, vol. 44(3), pages 365-381, September.
    8. Charles T. Clotfelter, 1985. "Federal Tax Policy and Charitable Giving," NBER Books, National Bureau of Economic Research, Inc, number clot85-1, March.
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    Cited by:

    1. Gerald E. Auten & Holger Sieg & Charles T. Clotfelter, 2002. "Charitable Giving, Income, and Taxes: An Analysis of Panel Data," American Economic Review, American Economic Association, vol. 92(1), pages 371-382, March.
    2. Bakija, Jon & Heim, Bradley T., 2011. "How Does Charitable Giving Respond to Incentives and Income? New Estimates From Panel Data," National Tax Journal, National Tax Association;National Tax Journal, vol. 64(2), pages 615-650, June.
    3. Carlos Ulibarri, 2000. "Rational Philanthropy and Cultural Capital," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 24(2), pages 135-146, May.
    4. Adena, Maja, 2021. "Tax-price elasticity of charitable donations – evidence from the German taxpayer panel," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 219-235.
    5. Gabrielle Fack & Camille Landais, 2010. "Are Tax Incentives for Charitable Giving Efficient? Evidence from France," NBER Chapters, in: Income Taxation, Trans-Atlantic Public Economics Seminar (TAPES), pages 117-141, National Bureau of Economic Research, Inc.
    6. Kwak, Sungil, 2011. "The Impact of Taxes on Charitable Giving: Empirical Evidence from the Korean Labor and Income Panel Study," MPRA Paper 36845, University Library of Munich, Germany.
    7. Berg, Nathan, 2006. "Behavioral Labor Economics," MPRA Paper 26366, University Library of Munich, Germany.
    8. Jon Bakija & Bradley Heim, 2008. "How Does Charitable Giving Respond to Incentives and Income? Dynamic Panel Estimates Accounting for Predictable Changes in Taxation," NBER Working Papers 14237, National Bureau of Economic Research, Inc.
    9. Zhiyong An, 2015. "On the sufficiency of using the elasticity of taxable income to calculate deadweight loss: the implications of charitable giving and warm glow," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(6), pages 1040-1047, December.
    10. Steinberg, Richard & Zhang, Ye & Brown, Eleanor & Rooney, Patrick, 2010. "Earned, owned, or transferred: are donations sensitive to the composition of income and wealth?," MPRA Paper 30082, University Library of Munich, Germany.
    11. Catherine Eckel, 2005. "Subsidizing Charitable Contributions: A Field Test Comparing Matching and Rebate Subsidies," Working Papers 2098, The Field Experiments Website.
    12. Alka Bramhandkar & Matthew Kimmey, 2013. "Charitable Donations: Feeling Good but Hardly Worth It," Accounting and Finance Research, Sciedu Press, vol. 2(4), pages 1-1, November.
    13. Catherine C. Eckel & Philip J. Grossman, 2006. "Subsidizing Charitable Contributions in the Field: Evidence from a Non-Secular Charity," Monash Economics Working Papers archive-44, Monash University, Department of Economics.
    14. Yörük, Barış K., 2014. "Does giving to charity lead to better health? Evidence from tax subsidies for charitable giving," Journal of Economic Psychology, Elsevier, vol. 45(C), pages 71-83.
    15. Ralph Bradley & Steven Holden & Robert Mcclelland, 2005. "A Robust Estimation Of The Effects Of Taxation On Charitable Contributions," Contemporary Economic Policy, Western Economic Association International, vol. 23(4), pages 545-554, October.
    16. Zhiyong An, 2023. "On the marginal cost of public funds: the implications of charitable giving and warm glow," Fiscal Studies, John Wiley & Sons, vol. 44(3), pages 299-307, September.
    17. Anna P. Kireenko & Sofia A. Golovan, 2016. "Feasibility of introduction the charitable tax deduction in Russian Federation," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 2(2), pages 111-125.
    18. Seiyoun Kim & Vjollca Sadiraj & Yongsheng Xu, 2024. "Tax Framing in Matching and Rebate Subsidy," Experimental Economics Center Working Paper Series 2023-01, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
    19. David H. Eaton & Martin I. Milkman, 2004. "An Empirical Examination of the Factors that Influence the Mix of Cash and Oncash giving to Charity," Public Finance Review, , vol. 32(6), pages 610-630, November.
    20. Wodon, Quentin & Alleyne, Betty & Cong, Lin & Mulusa, Judy & Niami, Farhad, 2014. "Accounting for Trends in Charitable Tax Deductions: Framework and Application to the District of Columbia," MPRA Paper 45392, University Library of Munich, Germany.
    21. Daniel M. Hungerman & Mark Ottoni-Wilhelm, 2021. "Impure Impact Giving: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 129(5), pages 1553-1614.
    22. Gruber, Jonathan, 2004. "Pay or pray? The impact of charitable subsidies on religious attendance," Journal of Public Economics, Elsevier, vol. 88(12), pages 2635-2655, December.
    23. Wilhelm, Mark Ottoni & Brown, Eleanor & Rooney, Patrick M. & Steinberg, Richard, 2008. "The intergenerational transmission of generosity," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2146-2156, October.
    24. Ludwig von Auer & Andreas Kalusche, 2010. "Steuerliche Spendenanreize: Ein Reformvorschlag," Research Papers in Economics 2010-07, University of Trier, Department of Economics.
    25. Jonathan Gruber, 2004. "Pay or Pray? The Impact of Charitable Subsidies on Religious Attendance," NBER Working Papers 10374, National Bureau of Economic Research, Inc.

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