Working Paper: NBER ID: w7663
Authors: David Joulfaian
Abstract: Charitable bequests are an important source of philanthropic support. Unlike bequests to children which can be taxed at a maximum statutory rate of 0.55, such transfers are exempt from estate taxation. Thus, by lowering the price of charitable giving, the estate tax may influence the disposition of terminal wealth. In this paper, I examine the effects of estate taxation on charitable bequests using data from estate tax returns of decedents in 1992. The results suggest that the estate tax deduction is budget' efficient. The overall effects of the estate tax, however, are likely to be modest as charitable bequests are wealth elastic.
Keywords: No keywords provided
JEL Codes: D19; H24; H31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Estate Tax Deduction (H24) | Price of Charitable Giving (D64) |
| Price of Charitable Giving (D64) | Charitable Bequests (D64) |
| Wealth (D31) | Charitable Bequests (D64) |
| Estate Tax Deduction (H24) | Charitable Bequests (D64) |