A Question About the Fiscal Cliff Negotiations

[Wiseacre]

A Question About the Fiscal Cliff Negotiations

Some democrats say that capping tax deductions won’t amount to anything substantive. That is, unless you cap charitable deductions. They further contest that capping charitable deductions would be bad for charities across the United States. My question is this; if you get a deduction for charitable giving, isn’t it in fact the government who paid for the charity and not the person making the donation? Is that charity or blind government incentivized welfare?

You are assuming it is the gov'ts money in the first place, which it is not. If a person makes a charitable donation and gets a deduction, the gov't didn't pay for nothin'.

Every tax expenditure has a cost to the taxpayer.

If you and I each earn $50,000 this year, say, and you get a deduction for one thing or another, I have to make up the difference. So while you get to keep more of your money, I have to cough up more of mine. I end up paying more of my money in taxes than you do.
Tax expenditures need to be flat-out banned. They are extremely regressive.

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This is not true. Whatever I pay or don't pay has nothing to do with what your tax obligation is.

It is however true that tax expenditures and deductions means the gov't gets less revenue. These days there are all sorts of tax breaks, deductions, subsidies and what not for many special interest groups and cronies that oughta be thoroughly scrubbed. In fact, I'd support throwing 'em all out and start over with no deductions or expenditures at all.