The income tax-deductibility of charitable contributions is, I think, more of a mixed bag than people generally realize but I think it does have a valuable role to play. But I wonder about the impact of these broader exemptions from taxation. Over and above the sort of revenue issues Dempsey is pointing to, when certain kinds of institutions are exempted from property taxes it can end up promoting very inefficient uses of land. Conveniently located space is a precious commodity, and there are widespread benefits to making sure that it’s generally occupied by high-intensity uses.Because offloading churches, schools, and hospitals onto neighboring jurisdictions is a brilliant way of promoting the values of our hero's beloved New Urbanism. Imagine the possibilities: If you got rid of the FAA, too, children could commute to school on helicopters (no need to burden the pilot market with a "licensing" cabal, of course). People could stop going to the hospital for dire illnesses (think of the cost savings). Private popemobiles for every Catholic who wants to attend Mass in the next county over!
2 hours ago
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