Exactly what are the $653 billion annual TAX Loopholes?

Discussion in 'Politics' started by healthmyths, Oct 5, 2012.

  1. healthmyths
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    healthmyths Gold Member Supporting Member

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    In the debate Obama/Romney discussed "deductions" that people that pay taxes can take reducing their tax bill.

    Now again.. folks again.. realize THESE ARE THE FACTS!

    (Substitute Tax deductions with "Tax Expenditures" in other words all money is the government and we are allowed the following "expenditures"..

    What are the largest tax expenditures?
    2008 expenditures (tax deductions allowed)
    Ranked by size the type of deduction and the amounts written off against taxes in 2008

    Amount of
    Deduction Type of deduction that government ALLOWS tax payer to subtract from taxes
    • [*]$131.0 billion Exclusion of employer medical insurance premiums and medical care
      [*]$117.7 Net exclusion of pension contributions and earnings
      [*]$ 88.5 Deductibility of mortgage interest on owner-occupied homes
      [*]$55.9 Accelerated depreciation of machinery and equipment
      [*]$49.1 Deductibility of non-business state and local taxes
      [*]$46.8 Deductibility of charitable contributions
      [*]$31.5 Deferral of income from controlled foreign corporations
      [*]$30.0 Capital gains exclusion on home sales
      [*]$29.1 Deductibility of State and local property tax on owner-occupied homes
      [*]$28.4 Child credit
      [*]$24.2 Capital gains (except agriculture,timber, and coal)
      [*]$21.5 Step-up basis of capital gains at death

    $653.7 billion

    So ONCE and for all folks IF the ENTIRE tax deductions were eliminated in 2008 there would have been $653.7 billion MORE in tax revenue.

    Again.. all the subjective, GUESSES HYPERBOLE about TAX Writeoffs, LOOPHOLES...
    Please Go to this site and get the substantiation for the above: What are the largest tax expenditures?
     
    Last edited: Oct 5, 2012
  2. VaYank5150
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    VaYank5150 Gold Member

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    So, are you trying to say that $653B will cover Romney's across the board 20% tax rate cuts? So as not to add to the defecit as he stated?
     
  3. healthmyths
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    healthmyths Gold Member Supporting Member

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    First what is a "defecit"??
    2nd When did Romney say he was going to have a "across the board 20% tax rate"?

    READ closely: Romney IS NOT MAKING MORE "across the board"
    BUT KEEPING.."Make Permanent"!!! NOT MORE JUST KEEP what already is from the BUSH cuts!"""

    NOW this is what Romney proposes directly from HIS WEB SITE:Tax | Mitt Romney for President

    Please VISIT don't guess... don't hyperbolize, don't anecdotalize... FACTS!!

    Individual Taxes
    America’s individual tax code applies relatively high marginal tax rates on a narrow tax base. Those high rates discourage work and entrepreneurship, as well as savings and investment. With 54 percent of private sector workers employed outside of corporations, individual rates also define the incentives for job-creating businesses. Lower marginal tax rates secure for all Americans the economic gains from tax reform.

    • Make permanent, across-the-board 20 percent cut in marginal rates
    • Maintain current tax rates on interest, dividends, and capital gains
    • Eliminate taxes for taxpayers with AGI below $200,000 on interest, dividends, and capital gains
    • Eliminate the Death Tax
    • Repeal the Alternative Minimum Tax (AMT)

    Corporate Taxes

    The U.S. economy’s 35 percent corporate tax rate is among the highest in the industrial world, reducing the ability of our nation’s businesses to compete in the global economy and to invest and create jobs at home. By limiting investment and growth, the high rate of corporate tax also hurts U.S. wages.

    Cut the corporate rate to 25 percent
    Strengthen and make permanent the R&D tax credit
    Switch to a territorial tax system
    Repeal the corporate Alternative Minimum Tax (AMT)

    So FIRST learn to spell "deficit"!
    Second NO ACROSS THE BOARD CUTS!!! Keeping the already existing tax code permanent!!!!

    Then pay attention to the following comment explaining the reduction in deductions!!!
     
  4. g5000
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    g5000 Diamond Member

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    Six of the top twelve you listed, including the three biggest ones at the top, are used extensively by the middle class and you would have one hell of a fight taking those deductions away from them. That's why Romney categorically ruled out elminating the mortgage interest deduction.

    .
     
    Last edited: Oct 5, 2012
  5. healthmyths
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    healthmyths Gold Member Supporting Member

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    Exactly what Romney said in the debate HIS WOrDS!!
    CHECK HIS words:
    Transcript And Audio: First Obama-Romney Presidential Debate : NPR

    "But in order for us not to lose revenue, have the government run out of money,
    I also lower deductions and credits and exemptions so that we keep taking in the same money when you also account for growth."

    BUT the real operative I took out of Romney's debate was RAISING THE NUMBER of people that PAY TAXES!!!
    And that's done by increasing employment.
    For every 1 million people hired at $30,000 a year $5 billion a year in SS/Medicare taxes ALONE NOT COUNTING income tax revenue would be raised!
    Now assuming to live each of these 1 million WERE UNEMPLOYED and received Unemployment and food stamps ELIMINATING $5 billion in expenses!
    A net swing of $10 billion a year for every 1 million having jobs!
     

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