On the Desirability of Taxing Charitable Contributions



vis the status-signaling one and on the desirability of the public goods financed by
charity (the magnitude of the parameter
α in our model).

The distinction between the conflicting tax implications of the two
contributions motives raises the possibility of designing a system of differential tax
treatment of contributions depending on whether they are anonymous or not. When
contributions are anonymous, they indicate that they are driven by altruism.
Therefore, a favorable tax treatment may be targeted toward the latter. Note further
that the ability to signal status via 'charitable' contributions hinges crucially on the
assumption that such contributions are indeed observable. The role of status-signaling
in mitigating the free-rider problem may call for policy measures aimed at facilitating
the dissemination of such information and rendering it more observable; see the
related discussion of Cooter and Broughman (2005), suggesting a donation registry of
the IRS via the internet.

21



More intriguing information

1. An Estimated DSGE Model of the Indian Economy.
2. he Virtual Playground: an Educational Virtual Reality Environment for Evaluating Interactivity and Conceptual Learning
3. Achieving the MDGs – A Note
4. Existentialism: a Philosophy of Hope or Despair?
5. Developmental changes in the theta response system: a single sweep analysis
6. The name is absent
7. A MARKOVIAN APPROXIMATED SOLUTION TO A PORTFOLIO MANAGEMENT PROBLEM
8. Quality Enhancement for E-Learning Courses: The Role of Student Feedback
9. The name is absent
10. THE EFFECT OF MARKETING COOPERATIVES ON COST-REDUCING PROCESS INNOVATION ACTIVITY