Posts

Sorted by New

Wiki Contributions

Comments

Getting this point across is difficult, and it's a common problem. For example, I'm from Norway and favor the system we have here with comparatively high taxes on the high earners, and high benefits. When I discuss economics with people from other political systems, say Americans, invariably I get a version of the same:

If I'm happy to pay higher taxes, then I can do that in USA too -- I can just donate to charities of my choice. As an added bonus, this would let me pick which charities I care most about.

The problem is the same as the polluting though: By donating to charities, I reduce the need for government-intervention, which again reduces the need for taxes, which mostly benefit those people paying most taxes.

That is, by donating to charities, I reward those people who earn well and (imho) "should" contribute more to society (by donating themselves) but don't.

So that situation is unstable: The higher the fraction of needed-support is paid for trough charitable giving, the larger is the reward for not giving.