ERIC Number: ED158654
Record Type: Non-Journal
Publication Date: 1978-Aug
Reference Count: N/A
The Case for the Charitable Deduction: Extending Eligibility to Every Taxpayer. A Guide to Tax Policy and Higher Education. Tax Studies Paper No. 5.
Council for Advancement and Support of Education, Washington, DC.; National Association of Independent Colleges and Universities, Washington, DC. National Inst. of Independent Colleges and Universities.; American Council on Education, Washington, DC.; Association of Governing Boards of Universities and Colleges, Washington, DC.
Extending the charitable deduction to all taxpayers, not just those who itemize, would help protect the deduction from the unintended, indirect, and adverse effects of other changes in tax laws, such as increases in the standard deduction. Recent trends to simplify the tax law and to induce more taxpayers to utilize the standard deduction have significantly narrowed the incentive effect of the charitable deduction and has seriously reduced the flow of funds to charities. Extending the charitable deduction to all taxpayers would increase the total amount of real revenues available to support community activities and help alleviate public problems. Over 85 percent of the revenues "given up" would show up as a reduction in taxes for current non-itemizers, those 77 percent of all taxpayers who use the standard deduction and have predominantly low and middle incomes. The theoretical tax policy arguments for extending the charitable deduction are presented, and it is contended that the deduction would not unduly complicate tax compliance. The nature of the American system has from its inception encouraged voluntary associations and institutions as one way to serve the public good, and support for charitable organizations has been a cornerstone of this pluralistic society. Background material concerning the proposed legislation to extend the charitable deduction is appended. (SW)
Descriptors: Community Support, Educational Finance, Federal Legislation, Finance Reform, Financial Policy, Higher Education, Nonprofit Organizations, Private Colleges, Private Financial Support, Private School Aid, Public Support, Taxes
The National Institute of Independent Colleges and Universities, Office of Research, 1717 Massachusetts Avenue, N.W., Suite 503, Washington, D.C. 20036 ($0.75)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: Council for Advancement and Support of Education, Washington, DC.; National Association of Independent Colleges and Universities, Washington, DC. National Inst. of Independent Colleges and Universities.; American Council on Education, Washington, DC.; Association of Governing Boards of Universities and Colleges, Washington, DC.