Richard Posner argues that the tax law should be changed to deny a charitable deduction for contributions to American charities that donate to foreign charities:
Americans do not receive an income tax deduction for giving to foreign charities, but they do for giving to domestic charities that donate abroad (provided they don't just donate to foreign charities). Should they? I am inclined to think they should not.
I tend to support allowing at least some tax deduction for giving to foreign charities. Otherwise, it may be just another form of protectionism, where American services and goods are favored over foreign services and goods. Since protectionist arguments take many disguises, it is likely that some of the opposition to allowing tax deductions for foreign charities is due to the desire to impose tax disadvantages on the "import" by American individuals and organizations of foreign "goods".
