Monday, May 17, 2004

Robert Paine has published The Tax Treatment of International Philanthropy and Public Policy, 19 Akron Tax J. 1 (2004). Here is part of the introduction:

Despite the changes in the landscape of international philanthropy and the revelations regarding its abuse, the U.S. tax system continues to impose an archaic and inconsistent web of policies and restrictions on taxpayers: a system of rules and limitations that differ according to the status of the taxpayer as an individual, a public charity, or a private foundation. The traditional policy that has guided the development of the charitable deduction and tax exemption is that charitable activities ease a burden that would otherwise have to be borne by the United States government. This policy creates inconsistent treatment, however, when it is applied to international charitable giving. Because of this inconsistent treatment and the ever-increasing globalization of the world’s communities, Congress should adopt a new policy to guide this field: a policy that grants a charitable deduction and tax exemption (1) if a contribution or grant furthers one of the traditional charitable purposes enumerated in § 501(c)(3) and (2) if the activity does not violate the public policy of the United States.