Toward a Small Donor Democracy: The Past and Future of Incentive Programs for Small Political Contributions

Abstract

Political contribution incentive programs are a promising, under-explored means to address the problem of political equality in the American system of campaign finance. If properly designed, these programs - which include tax credits, refunds, and vouchers - could allow all Americans to participate on an equal basis in the crucial early-stage decisions that determine which candidates decide to run and are able to compete effectively. This article, written on behalf of U.S. PIRG, proposes a tax credit for political contributions as a first step toward building a small donor democracy.

Keywords: Campaign, finance, reform, politics, tax, credit, political, contributions, voucher

JEL Classification: K30, K34, K40