I thought that the tax-deductibility of charitable donations was limited at higher income levels. Should it be?

The points that several people made in this thread, that a vast portion of charitable giving benefits the middle class and the wealthy, is right on - think art museums, universities, the Mormon church (sorry, easy target). Few philantropists have Bill Gates' vision and purpose. So private charitable giving cannot replace a social safety net. People give to causes that appeal to them, for selfish reasons ultimately. But there's also need for systematic, rational, reliable charity, the kind that makes a permanent difference.

Personally, yes, I really like the tax exemption for charitable giving. It makes giving less painful, and is another incentive to give.