Robert Reich: Charitable tax deductions should be limited to donations to charities that directly benefit the poor. Donations to universities, museums, and other cultural institutions should lose their tax deductions. (I wonder what Reich would say about donations to medical research).

Via Mark Thoma at Economist's View, from whom I've stolen the title for this clip.

Interesting point. Perhaps a charity should be assigned an index as a factor to calculate donations. That is: charity A is rated at 100% so that all the donation is deductible; charity B is rated 50% to allow a $1000 deduction for each $2000 donated; charity C rated at 10%, so $1000 donation equals $100 deduction and charity D we'll rate at -100% and will atract tax equivalent to 100% so that each $1000 donated will increase your tax bill a further $1000. <name witheld to prevent assassination>