U.S. Tax code "Expenditures" i.e. deductions from taxes

Discussion in 'Politics' started by healthmyths, Oct 4, 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.

    BUT did you know the government defines the deductions as "Expenditures".. i.e. Government allows US to keep i.e. not report on on our taxes i.e. deductions from what the government OWNS!

    (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

    Type of deduction that government ALLOWS tax payer to subtract from taxes AMOUNT in Billions
    1) Exclusion of employer medical insurance premiums and medical care $131.0
    2) Net exclusion of pension contributions and earnings $117.7
    3) Deductibility of mortgage interest on owner-occupied homes $88.5
    4) Accelerated depreciation of machinery and equipment $55.9
    5) Deductibility of non-business state and local taxes $49.1
    6) Deductibility of charitable contributions $46.8
    7) Deferral of income from controlled foreign corporations $31.5
    8) Capital gains exclusion on home sales $30.0
    9) Deductibility of State and local property tax on owner-occupied homes $29.1
    10) Child credit $28.4
    11) Capital gains (except agriculture,timber, and coal) $24.2
    12) Step-up basis of capital gains at death $21.5


    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.
     

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