Most of these influences lie completely outside the tax code and the realm of economics. Perhaps the most important influence on charitable activity is religious participation. Indeed they are. On the individual giving side, religious participation is equally important. 15 Other demographic factors also are important determinants of individual giving patterns.
Age is important.
Those below the age of 45 give an average of about 1.6 percent of their income. All too often, analysts and other interested parties focus on one or two aspects of the current tax code or donating public but ignore the fundamental changes a flat tax would have on taxpayers. These analysts are working within the box of the current system. But the flat tax would represent such a shift in American life that it is necessary to step out of the box and take a fresh look at all the important considerations. With these new reports, Pearl Richardson of the CBO and Alan Reynolds of the Hudson Institute have done just that.