SwimExpert
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- Nov 26, 2013
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- #81
There are specifics, then there are generalities. There are deductions, then there are tax expenditures. Deductions are general rules whereby basic taxation is assessed. For example, the first $10,000 of income is nontaxable.
And tax rates have to be higher because of that to make up the difference for that exemption.
And again, everyone's tax rates have to be higher because of that.On the other hand, if you bought three houses in the past year off the profits of the sale of a boat at least 45 feet long but more than seven years old, and use two houses as alternating residences while the third has been unoccupied for 9 of the past 12 months, with no more than 2 consecutive months of occupancy, and the difference between the year the house was built and the year of your birth comes out to be an even number not equal to 6, and the house is currently either blue or brown and a second color.....that is a tax expenditure.
Tax expenditures are specific exceptions to general taxation that only apply to a select qualified individuals or entities, typically for the purpose of using government policy to encourage or compensate certain behaviors, or to hand out political favors.
A tax expenditure is a tax expenditure which results in deficit spending (borrowing) and higher tax rates.
Deficit spending is caused by fiscal irresponsibility. The constitution only requires $5.35 worth of expenditures a year. Everything else is a decision.