The standard Republican idea for “balancing the federal budget” is to not increase tax rates but instead cut out deductions and loopholes in the tax system, thereby simplifying it.
The Democrats whine, cry and moan that “The Rich” still wouldn’t be “paying their fair share” and dismiss this idea.
So you can color me surprised when the very hardcore left-wing Professor Paul Buchheit goes on to publish an article over at AlterNet that basically states that the entire federal deficit could be erased by simply cutting deductions and closing loopholes, and the leftosphere blogs extensively link to it.
They know the Republicans are telling the truth and yet that still isn’t enough. After all, they need to increase federal spending to get their utopia.
Hell No!
Cutting loopholes is code for raising taxes. There is no ‘mortgage deduction’, it is just that the federal government doesn’t tax the money spent on mortgages. Politicians like to pretend that the lack of extra taxes are deductions, so citizens feel grateful.
Or consider the ‘deductions’ for having multiple dependents (kids or grandparents living with you). That isn’t a deduction; that is a partial acknowledgement that a paycheck is being split 4 ways. A family of 4 that earns $80,000 total should pay the same tax as a single person earning $20,000 per year, times 4. The tax code already punishes families; and cutting the dependent deduction is not closing a loophole – it is just a tax hike.
Liberals start with assumption that 100% of every type of income belongs to the government, which generously gives up 35 or 40%.
Would you favor ending the gun tax loophole? If a Honorable Representative announces that he learned that only short barreled rifles and shotguns, AOW and silencerss pay the $300 tax, and that long guns and pistols are exempted, and that loophole must be closed so that every single gun sale, new and used, generates $300 in extra income – is that money that the Federal Government is wasting on gun owners?
Ruger sold a million guns last year? $300 million would be enough to fund an entire building of new ATF agents, or five NIH grants to investigate why teenagers like sex so much.