I like this approach.
It makes sense, and it mostly dodges the problem that other “simple” formulae for charity have—namely that most simple systems tend to be essentially voluntary regressive taxation.
This is why the 10% rule has always bugged me—it is a culturally accepted voluntary regressive tax, and as such it exacerbates social inequality.
[Also, one of my friends likes to joke that our culture holds that you give 10% of your income to charity, but capital gains are exempt...]
I’m always on the lookout for things that seem innocuous or even beneficial that actually are ways of enforcing the social structure and preventing upwards mobility, like our strange insistence on prescriptive rules of language, and upon the necessity of “sounding intelligent”.
Language are evolved social constructs, and “correct grammar” is determined by native speakers. However, we impose additional rules that stray from the natural form of the language, and develop a notion that certain ways of speaking/writing are proper, and that other ways are ignorant. To learn how to speak in a way that sounds intelligent requires additional investment of time and effort, and those that cannot afford to do so (can’t afford to spend as much time reading, or comes from an area with worse schools) will grow up speaking a completely intelligible version of the language, but one that is generally recognized as sounding like a marker of ignorance, and thus limits possibilities for advancement.
Ok, I really got off topic there, but my point was that our cultural construct that people should give a fixed percentage of their income to charity might very well not be a force for good, but rather a force opposing good.
It is a regressive taxation system, but one that is culturally supported. Further, because so many people feel like everyone is already voluntarily consenting to give to charity (especially through religious organizations) that actual taxation is an unnecessary imposition.
If we didn’t have a culturally accepted obligation for charity, we wouldn’t give as much money to inefficient charities and religious institutions, and might be more willing to consent to a higher progressive tax.
Yes, that is true as well.
My point was that since our cultural instinct is to give, but in practice this is done inefficiently, [charities are wasteful, people don’t give to charities to optimize utility but rather to charities that they think they like, and a flat percentage is probably worse than a progressive tax], and therefore it would probably be better for society if we didn’t expect charity from people—this seemingly beneficial cultural obligation can be argued to be harmful.