Saturday, December 29, 2007
Taxprof Blog reports that Anup Malani and Eric Posner, two University of Chicago professors hewing to the Chicago economic tradition, have published a provocative argument for subsidizing profit-takers who engage in charitable activity. Malani and Posner's basic assertion is that the distribution of profit should not deprive an organization of tax benefits designed to subsidize charitable activity. Indeed, the profit incentive might even serve to increase the delivery of "public goods. But doesn't the charitable contribution deduction already do what these scholars advocate on an activity by activity basis (rather by an entity-by entity basis)? See Caron's report for more details and to download a copy of the article.