With marginal tax rates (FIT, SIT & SS) often approaching 50%, it becomes more beneficial (and easier) to seek additional deductions to taxable income (negative economic decisions) than it does to increase taxable income (positive economic decisions). The rationale behind reducing tax rates AND deductions is not to immediately change government tax revenues, but to encourage positive economic decisions which grow the economy and employ more people. This, in turn, will then have a secondary effect of reducing government expenditures and actually increasing tax revenues. Questions?