SUPPORT FROM GOVERNMENT 



adjusted gross income for 1958 might have been upwards of 

 $70 billion, and the government's loss of revenue about $15 

 billion. Government ostensibly is willing to forego many billions 

 of income to stimulate the taxpayer's generosity. Actually, his 

 generous impulses appear to be inhibited and revenue not 

 jeopardized, as shown by the fact that for many years, donors 

 itemizing gifts have given but 4 per cent of the total of adjusted 



50 100 



ADJUSTED 



Thousands of dollars 



Figure i. Graph based on tables accompanying income tax 

 forms, showing cost of giving for all taxable incomes. The dotted 

 line indicates equalization of costs, as here proposed. 



gross incomes. Amendments which raised the upper limit from 

 1 5 per cent to 20 per cent, then to 30 per cent, did not affect 

 the percentage given. 



A search for possible reasons for this stability leads to an 

 examination of the income tax provisions. In the highest income 

 group, the cost of making a one-dollar gift is 9 cents; and for the 

 lowest income subject to tax, the cost is 80 cents. This results 

 from the 91 per cent and 20 per cent maximum tax rates, 

 respectively, for the two extreme cases cited. Thus the cost of 



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