Charitable gratuitous transfers

Why should equation 8 numerator not contain a (1-Tg) at the end to also indicate savings on gift transfer tax?

There is no gift tax on the transfer, and the alternative to the transfer is making a bequest, for which the estate tax applies, not the gift tax.

The tax benefit of making the gift is a smaller estate to bequeath, resulting in saving estate taxes, not gift taxes.

Oh okay. We aren’t comparing one numerator with another here, so it shouldn’t be included. Thanks.

(Note to self : never post questions before having had tea)

You’re welcome.