Sunday, May 21, 2006

Tax Cuts

Even Individuals less radically dense than myself can possibly wonder at elected officials claiming victory after initiating Tax Cuts, when those Tax reductions will worsen an already deficit Budget. One could ask why Anyone would feel victorious about a destabilized Government budget being further degraded. It appears obvious One should attempt to improve a corrupted fiscal instrument, not ensure its further destruction.

What is the major problem with Tax Cuts?

The real answer is Accountants. Why should I slight such an honored Profession? The Answer states the evil of Tax Cuts lies in the methodology of the granting system of Tax exemption. Any projected Tax Cut has two ways in which it can be introduced: set financial size, or by percentage of Income covered. Personal Exemption, it may be noted, always are set by direct financial size; they don't want Just Anyone getting a percentage take on the Tax break; why this might even reach a point where Legislators could not increase the taxation of the Poor. Many other Tax Cuts can be found where they are of set financial size, or at least, a set financial limit is imposed. Accountants realize you can't give just Anyone too much more money!

The other method of Tax Cut award is percentage estimating. Accountants love this one, which is the Bread and Butter of their profession. You might notice that no Tax credit for Investment has ever been granted as set financial size, like: You invest $10,000 or more, you will get a $10,000 remission of Tax. Accountants could do nothing with such an aberration. Why, whether their Customers invested anywhere from $10,000 to $1 bn, the tax remission would still only be $10,000. This would be wholely unacceptable to both Accountant and Customer. Still, with a thing like a 23% Capital Gains Tax rate, Our deficit would be well on its way to being eliminated. We might possibly eliminate the National Debt in entirety, even when marching into the ballooning Social Security Costs of the retiring Baby Boomers. lgl

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