Philanthropy vs redistribution

Should there really be tax breaks for donations to the arts, as Paul Myners and Nicholas Serota demand here? The Pigovian case for such tax breaks is well-known; without them, there'd be an under-supply of such public goods. However, the egalitarian case for such breaks is very shaky, as this recent paper discusses.
It argues that donations to the arts can actually increase inequalities of well-being  in two ways - even leaving aside the possibility that such donations are really intended to boost the ego of the donor. First, because  the rich gain from donations by other rich people; if I donate to an art gallery, others' donations will benefit me by improving the gallery, and by attracting attention towards my generosity. Second, because some of the non-rich go to art galleries more than others, inequalities between the non-rich might rise.
It's possible, therefore, that such gifts actually increase inequalities. In such cases, philanthropy isn't a substitute for redistribution, but actually strengthens the case for it.
There are of course many arguments against redistributive taxes. However, the claim that they stop the rich giving to the arts is not one that should concince egalitarians.
This doesn't mean there should be no tax breaks for charitable donations. What it means is that the case for such breaks lies in efficiency, not equality, and that there's a big difference between the sort of philanthropy that benefits the poor directly and the sort, like art donations, that do not.

Comments

[reason]

And the direct sort is also to be avoided for the same reason that people voted for social welfare state in the first place. It is demeaning, unreliable and can create an unhealthy dependency relationship (that can be unfairly exploited). State charity is at least democratically accountable. No matter how meaning, the billionaire philanthropist becomes a dictator.

[reason]

... how well meaning, ...

[STB]

'No matter how [well] meaning, the billionaire philanthropist becomes a dictator'.

Who do you think you are? Carnegie? Mitchell?

Librarian dictators I can live with.

STB