Abstract
We use a survey-based approach to compare the effects of alternative forms of tax relief on donations—a tax rebate for the donor and a matched payment to the charity. On accounting grounds these two are equivalent but, in line with earlier experimental studies, we find that charitable contributions are significantly more responsive to a match than to a rebate. The difference can largely be explained by the fact that a majority of donors do not adjust their nominal donations in response to a change in subsidy. We relate our findings to the growing literature on behavioural tax policy.
Original language | English |
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Pages (from-to) | 330-352 |
Number of pages | 23 |
Journal | International Tax and Public Finance |
Volume | 22 |
Issue number | 2 |
Early online date | 21 Feb 2014 |
DOIs | |
Publication status | Published - Apr 2015 |
Keywords
- Charitable giving
- Match and rebate
- Salience
- Tax incentives
ASJC Scopus subject areas
- Accounting
- Finance
- Economics and Econometrics