Interesting piece in the NYT on the bang for the buck that comes from the deductibility of charity:
The rich are giving more to charity than ever, but people like Mr.
Broad are not the only ones footing the bill for such generosity. For
every three dollars they give away, the federal government typically
gives up a dollar or more in tax revenue, because of the charitable tax
deduction and by not collecting estate taxes.
Mr. Broad (rhymes
with road) says his gifts provide a greater public benefit than if the
money goes to taxes for the government to spend. “I believe the public
benefit is significantly greater than the tax benefit an individual
receives,” Mr. Broad said. “I think there’s a multiplier effect. What
smart, entrepreneurial philanthropists and their foundations do is get
greater value for how they invest their money than if the government
were doing it.”