Over at The Hill, our domestic policy studies colleague Howard Husock recently argued that repealing the $10,000 cap on the federal tax deduction for state and local taxes (SALT) would reduce charitable giving. His claim, as we understand it, is based on the idea that high-income taxpayers organize their lives to target a certain federal tax liability. As such, if they can deduct more dollars in property taxes (because the SALT cap has been eliminated), reducing their federal tax liability, they will then reduce or eliminate other deductible expenses, such as their charitable giving.

While the SALT cap repeal will have an impact on the progressivity and the geographic distribution of the federal tax burden and may have consequences for state and local public finances, there will be no adverse risk to charitable giving. In fact, if lawmakers repeal the SALT cap, charitable giving would likely increase.