Scrooge U: The Illusion of Generosity

Capital Research Center ^ | April 2008 | Lynne Munson

[from occupied ga]

I think if people are going to get tax deductions from donating to these things - tax deductions that get them tangible things like preferential admissions for their children, the taxpaying public has an interest in regulating what goes on behind the curtain

Your conclusion only makes sense if you postulate some sort of effect on your tzx costs by someone else's tax aviodance. Just isn't so. Government spending is not a zero sum game where every dollar spent is offset by a dollar plundered from the taxpayers. That would be bad enough, but the federal government always spends in excess of its revenue, by borrowing and inflating. So you could possibly make the argument that cutting government revenue cuts spending because there is less money to spend and borrowing gets harder as more and more money is borrowed.

[from occupied ga]

There are a number of books that show this, but you don’t need anything except a history book to get the general idea.

[bobjam]

“Sunlight is an excellent disinfectant. Perhaps more alums will think twice before writing a large check for the Universities to just sit upon and collect interest”

That’s assuming these alumi write the checks for the noble purpose of expanding higher education. No doubt that many of them do have that goal, but I would suggest that many see their contributions as membership dues in an exclusive club. The more they give, the higher they go in the club. It really doesn’t matter to them whether the money they give is spent on scholarships, buildings, sports, or Wall Street.