Tax reform and philanthropy's 3 percent solution

When Congress reforms the tax code, it should pursue three broad objectives: To restore vigorous economic growth, simplify the tax code, and strengthen civil society, so that fewer decisions are made by the federal government and more are made by voluntary associations.

One of the best ways to achieve this last goal is to increase charitable giving to 3 percent of gross domestic product. Tax reform could help achieve this goal by making the charitable deduction universally available to Americans of all income levels — whether or not they itemize.

America is the most charitable country on earth. No other country comes close. For the last 50 years, Americans have voluntarily given 2 percent of GDP for charitable causes. In Britain, France, Germany, Japan, Canada, and other major industrial democracies, charitable giving is one percent of the economy or much less. Last year, Americans gave an astonishing $390 billion to charity, plus volunteer hours that are worth at least that much or more. But we can do better.

Charitable giving is central to American society. It is the lifeblood of our churches, synagogues, and other religious institutions. It has helped to make our private and public colleges the best in the world. It is indispensable for the flourishing of the arts, science, medical research, and natural habitat. It provides food for the hungry, care for the sick, shelter for the homeless. In Houston we are seeing the amazing work of volunteers and private givers in response to Hurricane Harvey's devastation.