Tuesday, December 21, 2010

Remember, Charity Agencies Are The Government's Competition

... hence this editorial from Richard Thaler of the University of Chicago.
NOW that Congress has actually managed to enact tax legislation, it may be time to consider some bigger issues. I hope that broad-based tax reform will be high on the list of both major parties.

Any meaningful reform will face intense lobbying from those who stand to lose. The tax deduction for charitable giving is a case in point. Although changes will be fought both by the givers and the receivers of tax-deductible donations, there is good reason to disregard their pleas.
You bet there is, Ricky. If we allow private individuals to engage in charity and it turns out to be more effective than the government, who knows what could happen? Haven't we learned anything from the past 40 years of government intervention? Just look at the successes we've had! Poverty is higher and we're $13T in the hole.

Err, maybe we shouldn't look at the results of handing social work over to the government ...

1 comment:

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