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AMERICAN.COM

The Journal of the American Enterprise Institute

Giving Charity a Break

03/15/2009

Should Americans get tax deductions for charitable giving abroad?

Richard Posner writes, “Total American charitable giving abroad is more than half as great as total U.S. governmental foreign aid, of which almost a third goes to Israel and Egypt. 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.” However, Gary Becker supports at least some tax deduction for giving to foreign charities. Elsewhere in The American, Leslie Lenkowsky is concerned about the Obama administration’s threat to philanthropy.