Interesting thread from @DougSaunders. A few thoughts from me, since no one asked:

1) donations get a tax credit, not a deduction. Pedantic I know, but the distinction matters. https://twitter.com/dougsaunders/status/1303840052536057857
2) The economic case against direct government grants to charities is that they may crowd out private donations. Some Canadian evidence this matters.
3) agree that the set of charities for which you’re allowed to claim donation credit matters for distribution of donations, and I’m sure there are good arguments to exclude some
4) as a response to one of the replies in the thread: charities do operate in a market, and incentives matter
5) personal view: keep the tax credit, since there’s evidence that it works in Canada (this evidence is hopefully coming to a journal in the near future)
You can follow @justinsmithecon.
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