Is There A Regional Bias in Federal Tax Subsidy Rates for Giving? / Charles T. Clotfelter, Daniel R. Feenberg.

Format:

Book

Author/Creator:

Clotfelter, Charles T.

Contributor:

National Bureau of Economic Research.

Feenberg, Daniel R.

Series:

Working Paper Series (National Bureau of Economic Research) no. w2564.

NBER working paper series no. w2564

Language:

English

Subjects (All):

Income tax deductions for charitable contributions.

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1988.

Cambridge, Massachussetts : National Bureau of Economic Research, [1988]

Summary:

This study examines regional variation in average subsidy rates for charitable donations. Because the tax incentive for contributions is embodied in an itemized deduction, the subsidy rate for an individual depends on the taxpayer's itemization status and marginal tax rate. It is well know that this subsidy rate rises with income. On a regional level, one would expect that subsidy rates would be higher in wealthier regions. What is not clear is the extent of such variation or whether subsidy rates vary systematically independent of income. In order to examine the various sources of variation, we decompse subsidy rates. We find significant variation in subsidy rates independent of income, in what appears to be an unintended regional bias in the federal policy toward charitable giving. If most contributions remain in the state or region of the donor, this bias will tend to affect the regional development of the nonprofit sector.

Notes:

Print version record

April 1988.