Death and Taxes

Bill

I accept the premise that taxes can be useful instrument of public policy.  And I am certainly pro growth, although I am much less certain than you that economic growth by itself produces that much happiness. The problem comes in agreeing on what those policies are. While we both believe that the health insurance exemption does not qualify, I am less sure about the home mortgage interest deduction, given the pivotal role that housing plays in the economy. What I don’t like about it is its regressive nature. Folks with enough dough to buy a home get the benefit. Renters get nothing.  

Simpler and fairer would clearly be in the eye of the beholder. Given the way Washington works, its hard to imagine that we could have such a national conversation. Still I’d like to see it happen no matter who takes the oath of office next January.

Eli

Budgets for Dummies (Reply)

Eli,
Near the end of your, "Budget for Dummies," you suggest a budget program that includes,
4) Stop subsidizing inefficiencies for special interest groups.
Huzzah I say.
But we do know where the big bucks are, yes? They are called tax expenditures, and are tax deductions for health care, charitable giving and mortgage interest. Nothing else comes close. Actually I shouldn't be so definitive, but those are big bucks and definitely subsidize inefficiencies for special interest groups.
You may be referring to business tax deductions, which I agree should also be eliminated. But those are chump change, relatively speaking. I'll update this with the numbers later.
You really are coming round to my way of thinking. I'm so proud.
Bill