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Publications By Author
Author: Bakija, Jon M.
Charitable Giving and the Estate Tax (Article/Tax Facts)
Jon M. Bakija , William G. Gale
Under current law, the estate tax will be repealed at the end of 2010 and reinstated at the end of 2011. This pattern seems unlikely to occur, though, and policy makers are already considering alternatives. One of the key issues is the impact on charitable giving. The estate tax encourages charitable giving at death by allowing a deduction for charitable bequests. It also encourages giving during life, because such gifts reduce the size of the estate (and thus the tax bill) at death. But the tax can also reduce charitable gifts because it diminishes the amount of money left in the estate to allocate among competing uses including charity.
Published: 12/08/03
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Effects of Estate Tax Reform on Charitable Giving (Policy Briefs/Tax Policy: Issues and Options)
Jon M. Bakija , William G. Gale
We find that estate tax repeal would reduce charitable bequests by between 22 and 37 percent, or between $3.6 billion and $6 billion per year. Previous studies are consistent with this finding, and also imply that repeal would reduce giving during life by a similar magnitude in dollar terms. The implied reduction in annual charitable donations in life and at death of $10 billion due to estate tax repeal implies that, each year, the nonprofit sector would lose resources equivalent to the total grants currently made by the largest 110 foundations in the United States.
Published: 07/10/03
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Charitable Bequests and Taxes on Inheritances and Estates: Aggregate Evidence from across States and Time (Discussion Papers/Tax Policy Center)
Jon M. Bakija , William G. Gale , Joel Slemrod
This paper examines the impact of wealth transfer taxes on charitable bequests. We exploit the fact that federal and state taxes on estates and inheritances vary over time, states, and real wealth levels. The effects of taxes are estimated using pooled cross-sectional data spanning several decades, based on aggregated information from federal estate tax returns. Under several different specifications, we find evidence of a strong incentive effect of estate and inheritance taxes on charitable bequests.
Published: 04/16/03
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