That's the rallying cry of the the Democrats and liberals in Congress as we try to reduce our massive debt...
But one of the most liberal newspapers in the country says the Democrats are looking in the wrong place if they are truly trying to reduce the deficit...
Broad tax breaks granted to millions of families at all income levels dwarf the corporate giveaways. Over the past two years, largely because of these popular benefits in the federal income tax code, the government has reached a rare milestone in tax collection — it has given away as much as it takes in.
The number of tax breaks has nearly doubled since the last major tax overhaul 25 years ago, with lawmakers adding new benefits for children, college tuition, retirement savings and investment. At the same time, some long-standing breaks have exploded in value, such as the deduction for mortgage interest and the tax-free treatment of health-insurance premiums paid by employers.
All told, federal taxpayers last year received $1.08 trillion in credits, deductions and other perks while paying $1.09 trillion in income taxes, according to government estimates.
http://www.washingtonpost.com/business/ ... ml?hpid=z1" onclick="window.open(this.href);return false;
That can't be...the middle class is being squeezed , we hear...Special interests are getting all the tax breaks, liberals shout...
Whoa is us...
To be fair, both parties love writing "favors" into the tax codes...and are really scared to take on these various sacred cows...Only about 8 percent of those benefits went to corporations. (The write-off for corporate jets equals about .03 percent of the total.) The bulk went to private households, primarily upper middle-class families that Obama has vowed to protect from new taxes.
“The big money is in the middle-class subsidies,” said Syracuse University economist Leonard Burman, former director of the nonpartisan Tax Policy Center. “You’re not going to balance the budget by eliminating ethanol credits. You have to go after things that really matter to a lot of people.”
More evidence that a flat tax with virtually no exemptions is needed...otherwise, we're hosed...
