Percentage tax designation institutions. On Sugden’s contractarian account

Abstract “Percentage Tax Designation Institutions”, also known as Philanthropy Laws”, are fiscal institutions through which taxpayers can freely designate a certain percentage of their income tax to organizations whose main activity is public interest: churches, third-sector organizations, political parties, etc. A comprehensive explanation such systems still lacking. In The Community Advantage , Robert Sugden provides an original theoretical account the Italian “8 × 1000” institution one those forms regulation that “would be justified ways expanding opportunity for mutually beneficial transactions” and, more particularly, liberal and “contractarian approach provision goods”. This article attempt expand deepen understanding not only 8 1000 but 5 2 institutions, by reflecting on possibly refining Sugden’s contractarian account, at least with regard part relies develops voluntary exchange tradition (Wicksell, Lindahl Buchanan). To remain faithful two normative premises approach—the criterion correlated freedom choice—we must introduce some adjustments take into due way in taxpayers’ freedoms—not choice autonomy—are affected default rules related redistribution procedures. addition, these go beyond tradition—insofar they its basic assumptions: benefit principle taxation, self-interest very logic exchange—and, same time, read new form justice.