Article On Social Arguments for Charitable Deductions

Michael Goon (Milbank, Tweed, Hadley, & McCloy LLP) recently published an article entitled, A social argument for the charitable deduction, 70 N.Y.U. Ann. Surv. Am. L. 247-282 (2014).  Provided below is an abstract of the article:

This Note proceeds in four parts. Part I presents a short history of the passage of the charitable deduction and outlines the current statutory requirements for the deduction. Then on the basis of income tax and gift theory, Part II evaluates the argument that the charitable deduction is an essential part of an ideal income tax. Part III examines whether the charitable deduction can serve as an efficient subsidy for public goods that can also accurately reveal consumer preferences. Part IV offers a different, novel justification for the deduction: Americans believe in the act of charitable giving as a value unto itself and therefore want to reward the act of giving through the charitable deduction. Part IV also discusses further tax reform and argues that a credit system would more consistently and equitably recognize generosity among both rich and poor Americans than the current itemized deduction system. This analysis also draws upon previous tax reform in the United States, as well as French and Danish tax policies.