Working Paper
On the Desirability of Taxing Charitable Contributions
Tomer Blumkin, Efraim Sadka
CESifo, Munich, 2007
CESifo Working Paper No. 1900
CESifo, Munich, 2007
CESifo Working Paper No. 1900
![](https://cesifo.org/DocImg/cesifo1_wp1900.jpg?c=1689236971)
We develop a model that allows for public goods and status signaling through charitable contributions. This model provides a unified framework in which contributions are driven both by altruism and status signaling. We use this setup to re-examine the conventional practice of rendering a favorable tax treatment to charitable contributions.
CESifo Category
Public Finance
Public Finance
Keywords: optimal taxation, re-distribution, charitable contributions, inequality
JEL Classification: D600,H200