A primer explaining how the imposition of wealth taxes would harm the philanthropic sector is available today from Philanthropy Roundtable. “Wealth Tax Proposals Threaten Philanthropy” by Senior Director of Policy and Government Affairs at Philanthropy Roundtable Elizabeth McGuigan argues that wealth taxes don’t work and take dollars away from nimble charitable foundations that do the good work of helping the most vulnerable in our society.
“When it comes to growing prosperity and increasing charitable giving, wealth taxes are counterproductive,” said McGuigan. “It’s a choice between nonprofits having the dollars or the government having those dollars. Who is a better steward of the dollars you’ve earned? The IRS or your favorite charity?”
The primer identifies three major issues with attempts to impose a wealth tax in the U.S.:
- Wealth taxes are tough to administer and are ineffective. In other developed countries, wealth taxes have been largely abandoned because they don’t work.
- There is a question as to if wealth taxes are unconstitutional and potentially illegal.
- The ideological question of who is a better steward: the government or the charitable sector?
“Wealth Tax Proposals Threaten Philanthropy” encourages policy makers to consider the risk factors brought by pursuing a wealth tax and argues they should reject punitive laws and seek policies that support and protect the crucial role of the charitable sector.
Read the full primer here.