Has regulation of charitable foundations thrown the baby out with the bath water?

• 成果类型: Article
• 署名作者: Marx, Benjamin M.
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2015.07.004
• 发表日期: 2015
• 页码: 63-76
• 关键词: Charitable; FOUNDATIONS; Donation; avoidance; Compliance; regulation

摘要

Regulations to curb tax avoidance and evasion through charitable foundations have been in place since the Tax Reform Act of 1969. Newly-compiled longitudinal data makes it possible to estimate the effects of these regulations by comparing affected and unaffected foundations before and after the reform. Donations and entry dropped precipitously. Proxy variables suggest significant deterrence of abuses, but half of the decline in donations can be explained by the increased cost of running a foundation. The results highlight the potential for large reductions in the benefits of regulation when the cost of compliance affects externality-producing actions such as charitable giving. (C) 2015 Elsevier B.V. All rights reserved.