Tax Incentives

The NYTimes had an article on the Presidential Commission on Tax Reform. The Commission has determined there are too many Deductions and Exemptions in the current Tax Code. Surprise??? They criticize the fact there is no Trackback, to determine if Tax incentives actually impel the activity desired.

Tax incentives are a real Issue, though no one examines them in the context of Taxation. They introduced Tax 'unfairness' into the Code, as Tax incentives grant tax remissions to beneficiaries based upon their privileged placement or position, and not on account of their diligence, aptitude, or hard work. Incentives provide no benefit to Anyone who does not have a Tax to pay, or has already been forced to pay Taxes elsewhere ( this Group of almost 40% of all Taxpayers, actually are likely to pay a higher percentage rate of Taxation, than do the Tax incentive beneficiaries). The blizzard of Tax incentive fulfillment Paperwork often cancels the ability to benefit from the incentive, or even to utilize the opportunity. The greatest critique of Tax exemptions, Deductions, and Tax incentives remain artificially high rates of Taxation.

The Bush Privatization Plan for Social Security is a Case in Point. It will ensure Tax inequity is maintained, if measures are taken before Tax reform. The Later, though, could eliminate any need for SS system salvation. Tax Reform is the necessary component!!! lgl