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May 20, 2013
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Let’s Be Honest About TaxesPosted on Aug 26, 2010By Ruth Marcus I was pretty tough on House Minority Leader John Boehner the other day, and I don’t regret a word, but the Ohio Republican made one important suggestion that’s worth highlighting. It’s about the obscure-sounding but increasingly costly subject of tax expenditures. These are just what they sound like—spending programs disguised as tax breaks. In recent decades, the number and price tag of tax expenditures has exploded: The annual cost is approaching $1.2 trillion, according to the Center for American Progress. To put this in some perspective, that is half of what the government brings in through the tax code and twice the entire budget for non-security discretionary spending. This expansion has occurred in part because Boehner’s colleagues have been happy to embrace new tax expenditures—these are tax cuts, after all, and therefore by Republican definition always good—that they would denounce if accomplished through direct spending. Yet tax expenditures, once embedded in the code, are harder to remove because they don’t have to go through the annual appropriations process. This is government spending on autopilot. And because most are structured as deductions rather than credits, tax expenditures are worth more to wealthier people, who pay higher marginal tax rates. As Maya MacGuineas of the Committee for a Responsible Federal Budget has pointed out, it is bizarre social policy to subsidize millionaires who buy vacation homes. “We need to take a long and hard look at the undergrowth of deductions, credits, and special carve-outs that our tax code has become,” Boehner said in his speech to the City Club of Cleveland. “And, yes, we need to acknowledge that what Washington sometimes calls ‘tax cuts’ are really just poorly disguised spending programs that expand the role of government in the lives of individuals and employers.” Advertisement I can’t believe I’m saying this, but, bravo, Mr. Leader. Boehner put his finger on the problem of tackling tax expenditures: No matter how arcane the tax break, there are lobbyists poised to defend it at any cost. Your tax expenditure is a special-interest loophole. Mine is a near constitutional right. Don’t even think about touching my: mortgage interest deduction, state and local tax deduction, charitable giving deduction, child care tax credit, flexible health spending account, 401(k), IRA, college spending account, employer-sponsored health care ... well, you get the point. It’s clear what should be done about tax expenditures. Ronald Reagan and a Democratic Congress did it when they overhauled the tax code in 1986. Broaden the base. Clear out the “undergrowth” that Boehner correctly decried. Whether he becomes speaker next year or remains the minority leader, he ought to follow through on this one. Previous item: Inching Away From Bullfighting and Its Macho B.S. Next item: Riding the Milky Way in Tucson New and Improved CommentsIf you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy. |
By Siloam48, August 27, 2010 at 9:25 pm Link to this comment
Once the tax door has been opened there is no way to close it. Both political parties have worked together to increase taxes. There is no difference between the two except during election years where we hear their lies.
Report thisBy kerryrose, August 27, 2010 at 6:05 pm Link to this comment
Reagan as a model, Marcus?
In 1986, the cuts in tax expenditures were made politically attractive by combining them with tax rate reductions. Although such rate cuts cannot be afforded now, there is currently widespread public agreement that the deficit must be reduced, and a growing acceptance that cuts in government spending are the way to do it.
Guess whose tax rates were reduced in 86? Is Marcus’ real agenda to extend the tax breaks on the rich?
I hope Amy Goodman replaces Marcus as a female blogger on this site. Marcus is intolerable.
Report thisBy ocjim, August 27, 2010 at 5:24 pm Link to this comment
theobannion:
Democracy doesn’t exist because too many American voters are ignorant, uninformed or absent at elections. Thus propaganda and demagoguery decide our elections, that wrought by Republicans and permitted by intimidated and self-serving Dems.
Stupidity and indolence are rendering our democracy invalid.
Report thisBy theobannion, August 27, 2010 at 5:47 am Link to this comment
(Unregistered commenter)
And all those “admirable charitable donations” the rich make: they poke holes in the budget that the rest of us have to fill. A new library for Princeton gets deducted, so who really pays for it? The rest of us are stuck paying the salaries of the Big Business panderers in government, the cost of our piratical wars, the foreign aid given to keep right wing dictators and governments in power in the Third World, to enable the extractive industries to pollute unto death the environments of indigenous peoples (the number of trees left in the Andes can be counted), to divert water from rivers so they can bottle it and sell it back to us and turn downstream farms into bogs, and of course to pay the employees of the USAID office which assists businesses to relocate overseas. I say “Long live Democracy!” which doesn’t exist in the US.
Report thisBy Mike789, August 27, 2010 at 5:42 am Link to this comment
The archival footage of Boehner’s pronouncements should be tapped every time he speaks to the economy.
Put everything on the table, just like a Chinese menu [the allusion to our prime lender ought to be noted]; Column A - Social programs, Column B - Corporate subsidies. Then Mr Leader, talk to the nation about socialism. I’d be spellbound over a bowl of popcorn.
Report thisBy Fat Freddy, August 27, 2010 at 4:38 am Link to this comment
It is every politician’s duty to bring federal money home to their district. That’s the way our federal government works, unfortunately. The very first thing every president since Ronald Reagan (at least) has done, is to pass a spending Bill. I would argue, that if you want to take the “money out of politics”, take the money away from government.
Boner, like most politicians, talk a very good game, and tell people exactly what they want to hear. Unfortunately, what they say, and what they do, are almost always, two different things.
Report thisBy G.Anderson, August 26, 2010 at 7:50 pm Link to this comment
Go ahead Ruth, if you feel as if the government needs more money, pony up. No ones
stopping you.
But I have a better idea. Why not make the export of jobs over seas illegal. That way
American workers can pay taxes on their income instead of getting unemployment.
Or here’s another one why not charge American corporations a head tax on each
foreign worker they employ?
But you and your bosses won’t be in favor of that one will you? Or why not bring the
troops back home from all our plutocratic wars, and close our bases over seas, the
people can no longer afford the plutocracies new world Oder.
The bottom line is you can’t have freedom when your politicians believe in slavery.
Report thisIt’s time the rich paid their way.
By PatrickHenry, August 26, 2010 at 5:08 pm Link to this comment
Take the cap off social security and institute a flat tax and please quit nickle and dimeing me to death on every thing I use.
Report thisBy aybacks, August 26, 2010 at 3:51 pm Link to this comment
Nobody kid themselves, please. The only reason Boehner is saying anything like this is that he’s up for re-election. Watch his resolve on this completely evaporate after November.
Report thisBy gerard, August 26, 2010 at 3:26 pm Link to this comment
Quote: “Don’t even think about touching my mortgage interest deduction, state and local tax deduction, charitable giving deduction, child care tax credit, flexible health spending account, 401(k), IRA, college spending account, employer-sponsored health care ... well, you get the point.”
Well, one point is, the tax deductions mentioned above are almost entirely small amounts accruing to the lower and middle class.So if such deductions are cut, that means less coming back to the lower/
middles.
Furthermore, take an idem like deductions for charitable giving—a pretty small amount for me, necessarily, but for corporations, a big amount considering the amounts millions they give, usually just to get rid of it.
Report thisJust because a percentage is equal doesn’t mean the justice of it is equal. Taxes ought to be levied in sliding scale percentages with much more coming from the very wealthy who, as it is now, sink millions into thinktanks and tax-free locations in order to avoid paying “more than their share” (though taking more than their share doesn’t seem to bother them much.)
Or am I misunderstanding?
By tropicgirl, August 26, 2010 at 3:17 pm Link to this comment
(Unregistered commenter)
Reading Ruth Marcus is like reading a fairy tale that sounds familiar, that you
were read to as a child.
There is absolutely NO CONNECTION TO REALITY WHATSOEVER.
And Ruth, a tax break is not a debt. How moronic.
However, lets get our heads straight again…
THERE IS NO SHORTAGE OF WEALTH IN THIS WORLD, JUST PEOPLE AT THE TOP
WHO DICTATE WHO SHOULD HAVE IT AND CAUSE FINANCIAL DISASTERS and
WARS, SO THEY CAN CONTROL IT, VIA MONOPOLIES, THIEVERY and violence
and violent occupation.
Here is the latest example…
Its STILL ALL ABOUT THE BANKS AND THE WORLDWIDE LOOTING…
NOT ONLY ARE THEY AFTER ALL THE NATURAL RESOURCES THEY CAN GRAB
FROM THE MUSLIM COUNTRIES, THEY HAVE THEIR EYES ON A MUCH BIGGER
HAUL….
Bloomberg privately owns 85% of the limited liability corporation, Bloomberg
LLC.
Bloomberg intends to expand Bloomberg LLC, in its Dubai financial center, to
become a regional hub for the United Arab Emirates.
Since 2007, before his election as President, Obama has worked with
Bloomberg to support Sharia-compliant finance in order to complete the goals
of Bloomberg LLC and future US financial involvement in the UAE.
The Dubai regional center will allow Bloomberg access to Islamic sharia-based
banking and monetary systems by developing a sharia-compliant finance
portal. According to the regional head of Bloomberg LLC’s Middle East and
South Asia centers, Max Linnington:
” . . . Particularly since the meltdown of the western capitalist system, there has
been an increasingly large focus on the virtues of Islamic finance. Today, there
is no one single provider of information that caters to the Islamic finance
market. So by Bloomberg being here, we are in the process of building out an
Islamic finance product. We are very confident that we can build a product that
meets the needs of the market right now.”
The details, worked out through years of planning, do not include you,
America. The American system of finance is being chucked.
Still have any questions about Bloomberg’s position on the NYC mosque AND
WHY HE, ALSO, IS AN ASSHOLE?
Endless anger at Islam works just as well for the war part of it. Then, the
slithery State Department Imam will help with the Sharia-compliant stuff. Wow.
The world banks are going after all the Muslim money, making it part of the
Report thisWorld Government, SO THEY CAN LOOT THEM ALSO!!!! Wow.
By ocjim, August 26, 2010 at 1:19 pm Link to this comment
Two goals for tax-cuts—to redistribute wealth to the rich and reduce the size of social programs—have nothing to do with economics. They have all to do with ideology, which has the plutocratic agenda.
Report this