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Thor O. Thoresen
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Publisher: Journals Gateway
The Review of Economics and Statistics 1–45.
Published: 28 January 2025
Abstract
View articletitled, Wealth Taxation and Charitable Giving
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for article titled, Wealth Taxation and Charitable Giving
We use third-party reported data and two quasi-experiments from Norway to study how tax incentives affect charitable giving. First, using a shock to wealth tax exposure, we estimate the semi-elasticity of giving with respect to the after-tax return on wealth. Inconsistent with the notion that households accelerate giving to reduce future taxes, we find that a 1% wealth tax reduces giving by 26%. Second, using bunching at an income-tax deduction threshold, we estimate a moderate own-price elasticity of giving of -0.44. This elasticity exhibits little heterogeneity with respect to income and wealth but is considerably larger for religious giving.
Includes: Supplementary data