ScreamingEagle
Gold Member
- Jul 5, 2004
- 13,399
- 1,707
- 245
I see.....you are assuming we must maintain the same amount of tax income which then in turn would cause tax increases/debt.....however that is not necessarily a prerequisite for a tax exp. program as not all tax breaks are bad......
Actually, all tax breaks (deductions, exemptions, credits) ARE bad. To be more precise, only one tax expenditure has ever been proven to increase productivity: the EITC. And we know how pseudocons feel about tax breaks for the poor, so...
conservatives want to decrease spending any way they can so I don't see all tax exp. programs being all bad as long as they are not 'paid for'.....
Of course the number of those tax exp. programs has increased alot over the past couple decades so I agree with you that they are definitely helping to cause financial problems along with regular direct program spending....it's amazing how creative our politicians can be when it comes to spending....
As I said earlier, as far as increasing spending or cutting spending or not changing spending goes, that is irrelevant to the issue of tax expenditures.
Even if you cut government down to the bare bones, that does not mitigate the theft that is tax expenditures.
Let me explain.
You and an associate go out to lunch and you both order identical steak dinners.
The tab comes to $100. You two owe $50 each.
But the restaurant has a behavioral control policy that says if you bought a red tie with the restaurant logo on it, you get to deduct $20 from your share of the check.
You bought such a tie yesterday and are wearing it.
The tab is still $100, so while you are hootin and hollerin about "getting to keep more of my money", your associate is having to shell out $70 instead of $50.
Even though you had identical steaks, he is paying $70 while you are paying $30.
And he thinks the deduction scheme is a ripoff, and that you are an idiot.
Now to your point about cutting government spending:
After complaints about the cost of a steak, the restaurant fires half its staff, buys cheaper cuts of meat, and makes other cost cutting measures.
You and an associate go out to lunch and you both order identical steak dinners.
Now the tab comes to only $50. You two owe $25 each.
But the restaurant has a behavioral control policy that says if you bought a red tie with the restaurant logo on it, you get to deduct $20 from your share of the check.
You bought such a tie yesterday and are wearing it.
The tab is still $50, so while you are hootin and hollerin about "getting to keep more of my money", your associate is having to shell out $45 instead of $25.
Even though you had identical steaks, he is paying $45 while you are paying $5.
And he thinks the deduction scheme is a ripoff, and that you are an idiot.
That is how government works. The loss of revenue incurred by every deduction is shifted to every taxpayer in the form of higher tax rates.
Actually, only part of that loss of revenue is made up for by higher tax rates. A big percentage is made up for by borrowing heavily from China and other countries.
That steak discount could have come from the restaurant's advertising budget for that month.......doesn't necessarily mean the other guy is going to pay more for his steak.....
Of course I know government doesn't operate on a strict budget like businesses do......which is why we need to pare down ALL spending and taxes and limit government to basic necessities....
So you would cut the military and not build a wall?
Defense of our country is the one most important requirement of the federal government....