Business Report: Gov’t May Be Bigger Than You Think
Posted on April 2, 2012 at 6:45pm by Becket Adams
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But the tax break isn’t counted as spending. In fact, while the check for $2,100 is classified as “federal spending,” the tax break doesn’t even show up on the federal budget. So when you hear a policymaker talk about lowering the deficit or expanding/reducing the size of government, most of them don’t factor in tax breaks.
The CNN report goes on to argue that because tax breaks get the same results as government checks (e.g. giving homeowners deductions on mortgage interest, giving tax credits to “green” energy companies, etc), they’re practically interchangeable, right?
Not quite: the government check is directly funded by taxpayers while the tax break comes at a cost to no one.
But this is not to say that tax breaks should be disregarded from the deficit discussion. As taxes generate income, and fixing the deficit is all about balancing revenue with expenditures, then tax breaks should be included.
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That makes me ill.
Seriously. Are you kidding me!
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