directed toward this sector are tax policies. Yet most economic analysis of the optimal tax treatment of charitable giving is … ad hoc, treating it as a subject unto itself. This article advances a different approach: integrating the tax treatment … of charitable giving into the optimal income tax framework that has been developed over the past half century. The …

-seeking. Since there is a market for tax planning methods, the magnitude of these costs depends on the market structure. We consider … how a government might reduce tax planning by creating market inefficiencies or failures. We set forth a formal economic … model to identify the optimal amount of tax planning the government should permit, and consider how governmentally …