Charitable Giving in the United States
Who tops our “Shame Score”?
A report was released today by The Chronicle of Philanthropy, titled “How America Gives.” The report maps charitable giving by state, city and neighborhood, by analyzing IRS personal income tax data at the zip code level. Using the amount of charitable deductions, The Chronicle’s report showed which places gave the greatest (and least) portion of their income to charity. (Actually, the report would be more accurately named “Where America Gives,” not “How.”)
I did a similar analysis about a year ago, using the same data, and I’m pleased to see we reached the same conclusions. To summarize it simply, the poor give a greater percent of their income to charity than the wealthy, and people are more likely give more in states that vote Republican and are strongly religious.
The states with the highest percentage of claimed charitable contributions are Utah, Mississippi, Alabama, Tennessee, and South Carolina. The least generous states are New Hampshire, Maine, Vermont, Massachusetts, and Rhode Island.
I must admit, this is not what I had expected to find.
Continue reading “Charity in America – Surprising Insights”
There have been a number of news stories over the last two years about how the wealthy are fleeing states which have increased taxes on the highest tax brackets.
I’ll show you this line of thinking is not borne out by the facts, and is irrational to boot.
Here’s an example; a new story from the Wall Street Journal – titled “Millionaires Fleeing Taxes” (August 7, 2012).
The description of the video interview with the reporter (Arden Dale) states “When states raise taxes millionaires move out.” And the interviewer starts the piece by declaring, “Millionaires are fleeing from taxes!”
Wow, that sounds serious, and certainly very definitive. Let’s learn more.
Interviewer – “So tell us, where are the millionaires going?”
Ms. Dale – “People don’t want to be taxed… but when we looked the actual numbers, the actual studies of whether ‘Millionaire Flight’ occurs, what we found was that there is no really great statistical data that shows that it does.” (Note: while this is being said, a banner on the screen reads “Millionaires moving to avoid taxes.”)
Continue reading ““Millionaire Flight” theory – Don’t fall for it”