President's tax panel: Too many tax breaks

WASHINGTON — As taxpayers recover from finishing their annual filing chores, a presidential commission studying the tax laws has reached the conclusion that there are just too many deductions and credits.

Two credits, a deduction and special savings plans help taxpayers cut college costs. Special urban and rural tax zones encourage investment and job creation. Dozens of other tax benefits help families raise children and save for retirement, encourage adoption, nudge drivers toward hybrid cars and push businesses to invest in new equipment.

"We have lost sight of the fact that the fundamental purpose of our tax system is to raise revenues to fund government," according to President Bush's Advisory Panel on Federal Tax Reform.

The commission's chairman, former Florida Sen. Connie Mack, said its nine members have been surprised at the number of tax deductions and credits.

"It wasn't until we really had the opportunity to listen to so many different people talk about so many different aspects of the code that it really sunk in about how much and how often the code is being used these days to either create incentives or disincentives for either investment or behavior," Mack said in an interview with The Associated Press.

http://www.timesargus.com/apps/pbcs.dll/article?AID=/20050425/NEWS/504250317/1002/NEWS01

are there to help the middle class. Take away the incentives and the middle class will be stuck with even more of a tax burden proportionate to the super rich.

The real problem is that the super rich don't pay their fair share.

50 years ago coporations paid 60% of federal taxes....now the only support 16%.

Many large companies pay NO taxes, yet base a huge ammount of their buisness on tax funded programs. (General Electric...I'm looking at you)

Why should those forms of income being taxed at lower rates than income from wages?

Perhaps they wouldn't have to eliminate all of these special programs that help middle income people if we eliminate the special treatment of wealthy people's income.

That's all they are....

They are cut-taxes and spend like drunken sailor repugs

It's borrow and spend. They think the line of credit is infinite. I really don't think they think long range enough to understand the ramifications.
The Professor

be screwed?

than they were in the first? :shrug:

about taxes. Always means the little guy gets screwed.

That fact always seems to be lost on the majority of Republicans & right-leaning libertarians, who apparently don't believe that government and public works cost anything.

But as long as we are forced to somehow deliver such a vast amount of money, we may as well draw the funding in a way that positively reinforces good activities, preferably without being overly invasive in people's personal behavior.

It's a delicate balance. We can maintain a great free-market system, but sometimes the government must intervene when capitalism rewards socially destructive or counter-productive business & spending. Nothing wrong with that. The past century should have proven to everybody that the economic extremes are catastrophic.

Amazing.

Of course, they zero in on the breaks that encourage education and help the mid to lower class. Too dang many of those! :eyes:

lol.

And with the energy bill recently passed by the House, the oil companies got a few more tax breaks.

I wish I could afford a super-duper, high-powered, fancy footwork with the numbers accountant like whoever is on that panel.

Or maybe I should read the article, but whenever I hear phrases like "too many deductions and credits," then I see a sh*tstorm on the horizon and I can predict it's not going to be raining on the fatcats.

never fear, when we suffer..so do those in power!

to end tax breaks for the middle class--for college, small business, etc.--while leaving larger and more obscure tax breaks for the wealthy in place

already has been raised (that is, the cap at which it goes into effect has been raised so high that it affects, I believe, less than 1% of the population)...

But - at the same time (while we make sure the billiionaires can pass on ALL of their money) - we want to end the tax break to businesses for providing health insurance to employees.

And at the same time, health insurance is increasing so quickly that some companies have already begun to stop providing coverage and a growing LARGE number of americans are already uninsured.

And at the same time, when they finally pass their bankruptcy bill they allow no provision/relief for families who find themselves in bankruptcy due to sudden, serious, and expensive health care needs.

They are not even covert any more about their anti-middle class, anti-regular american citizen agenda. Its just that so few people are paying attention that they don't even notice.