Please use this identifier to cite or link to this item:
http://arks.princeton.edu/ark:/88435/dsp01wd376063j
Title: | The Effect of the Tax Cuts and Jobs Act of 2017 on Private Charitable Giving |
Authors: | Ventresca, Aaron |
Advisors: | Corman, Hope |
Department: | Economics |
Certificate Program: | Finance Program |
Class Year: | 2024 |
Abstract: | In this paper I estimate the effect of the Tax Cuts and Jobs Act of 2017 (TCJA) on private philanthropy. With the near doubling of the standard deduction, I predict that the total volume of charitable contributions decreases as a result of the policy. I employ dfference-in-differences, ordinary least squares, and two-stage least squares to estimate the causal impact of the change. I find that the TCJA: (1) causally decreased giving for itemizers relative to non-itemizers and (2) had no noticeable causal effect on donors versus non-donors. I conclude by discussing recommendations for future policy when the TCJA phases out of effect after December 31, 2025. Specifically, I posit that a small, above-the-line charitable deduction be included within the standard deduction to offset the crowding-out of private philanthropy by government incentives not to itemize. |
URI: | http://arks.princeton.edu/ark:/88435/dsp01wd376063j |
Type of Material: | Princeton University Senior Theses |
Language: | en |
Appears in Collections: | Economics, 1927-2024 |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
VENTRESCA-AARON-THESIS.pdf | 1.47 MB | Adobe PDF | Request a copy |
Items in Dataspace are protected by copyright, with all rights reserved, unless otherwise indicated.