This is consistent with Peloza and Steel (2005) whose meta-analysis tests the usual claim that tax price elasticities will be higher for itemizers
than for nonitemizers and finds the exact opposite.
The surveys also confirmed that lower-income itemizers
and nonitemizers tend to give predominantly to religious or social-service organizations (such as the United Way), while high-end donors tend to give to a wider array of organizations including scientific, educational, and cultural organizations.
Because it would be a credit, it would be available to all homeowners, not just itemizers
as under the current system.
Earlier studies on the impact of taxation on charitable contributions used cross-section data for itemizers
and typically found price elasticities greater than 1 (in absolute value).
As the sample size is relatively modest and because these coefficients are statistically significant and larger with a different itemizer
assignment (see Appendix C), I do not discount these as essentially zero estimates.
a dearth of recorded journal entries, or the total absence of receipts and records), the cost/benefit ratio of this endeavor will doubtless be high for the first time itemizer
However, of the 47,000 itemizers
, almost 30,000 earn less than $50,000 per year.
CPAs might determine which clients are likely to benefit from early mortgage payoff by reviewing tax returns to identify marginal itemizers
Kelly Browning, executive vice president of AICR, remains concerned about the potential for a charitable giving floor for itemizers
benefit from this, but the tax deduction from a large payout could qualify one to itemize.
The measure would allow a charitable deduction for both itemizers
for contributions more than $210 for individuals and $420 for couples, for two years, until Dec.
If leaders at Independent Sector had their way, "there would be no floor and we wouldn't be touching itemizers
," Aviv said.