This chart compiled by the Brookings Institute shows the top 10 tax loopholes. IMO, the super congress or whatever they call themselves will at some poiint look to this list as a way of balancing the budget without "raising taxes." This in my view will come to pass because few politicians have the guts to cut expenditures. They total over $600 BILLION per year, much more than congress set as a modest goal . http://www.tnr.com/article/the-vital-center/91145/obama-press-conference-tax-loopholes Seneca
Like anyone, I don't want to be the only one paying more taxes, but I will accept them if we all agree that they would help, and the burden is shared broadly. People who assume that everyone wants taxes only on the other guy and not on themselves are the worst kind of Americans, they're not team-players. They're <del>fragmentary</del> divisive.
If the republicans go along with cutting any of these, they can count on being a permanent minority. The only one that makes any sense to cut is employer -provided healthcare, but that will create a ton of outrage. The whole reason we are in this mess is the collapse of real estate, so eliminating the mortgage interest deduction is crazy. It would also be totally unfair to the millions of people who bought real estate relying on it. 401k plans are now a loophole? I thought they were the basis of private retirement plans, but of course liberals want an excuse to seize them and put everyone on a one size fits all government plan. Except of course for govenment workers, who will retain their lavish gold-plated plans. Some of them are absurd, eg "imputed rental income". I believe that means they want to tax you on the rental value of your house. Good luck with that. Stepped up basis of investments at death is a practical necessity. How are you going to know what grandpa paid for that stock 45 years ago? Tax "reformers" like to pretend there is a ton of revenue in eliminating them, but no republican politician is ever going to vote for them. Of course, that's why they want commissions, etc. If they did vote for them, they should be tarred and feathered, then hanged. One, for backstabbing the people that voted them in. Two, for stupidity. We went through this exercise before with Reagan. Eliminate "loopholes" and cut rates. Well, we eliminated the loopholes and crashed the real estate market back then in the process. The lowered rates? They didn't last too long. The minue the democrats got in, they raised them. The same thing will happen again.
A fine example of fake accounting. These are ESTIMATES of savings...not real savings! Look at that first "tax" - health care...but, I thought under Obamadeath...I mean ObamaCare, health costs were going down?!?! Multiply the first column (the 2012 estimate) of the png by 4 and see if the projections for 2012-2016 make sense...they don't! -g
The number one item on the list is healthcare for employees... if that is eliminated then our healthcare costs just skyrocketed! What a surprise... no really... The middle class isn't fading from the scene, they are being kicked in the stomach repeatedly by collectivists. Only lower classes will vote for collectivism overwhelmingly so the more lower class members the better for Democrats!!
Removing accelerated depreciation of machinery and equipment wouldn't save any money except in the first few years, the equipement will be depreciated fully over time any way. Home mortgage deduction probably makes sense to phase out and taxing most capital gains and dividends as ordinary income also makes some sense, this might have to be offset with a reduction of corporate taxes. Removing of charitable contributions also makes sense. The employeer deductions are legitmate business expenses and should be kept as should the 401K deductions.
They are all just tax manipulators. The Reagan era tax reforms just threw out a bunch of corrupt tax laws and replaced them with corrupt tax laws. People just donate to a politician and in return they can get an exemption from paying income taxes. Look at the tax codes sometime, just grab a book off the shelf, open it to a random page and start reading. It's just thousands and thousands of tax loopholes bought and paid for..