Tax Expenditures

Tax Expenditures remain simply the fancy name for Tax loopholes. I am not enamored of the Thought of Andrew Chamberlain, but this article stands as a very effective Read. The link to the Congressional Reseach Service provides this:

For FY2006, the Joint Committee on Taxation (JCT) estimates that tax expenditures will amount to $945 billion -- over three times the projected FY2006 federal budget deficit.

Curtailment of Tax Expenditures could completely eliminate the current federal deficit levels, and would narrow the Income Gap in Employment. Business Profits would descend from it's vaunted Position, as Households regained advantage in Labor supply.

The Angry Bears weigh in somewhat on this subject with this Post, alternately stating that the Bush Tax Cuts (Tax Expenditures) applied too little Short-term economic fuel, and too much long-term fiscal irresponsibility.

Government mismanagement extends beyond inefficient Tax policy, read Greg Mankiw's Post about the planned Potato cartel. Here We have Government-allowed (think sponsored) destruction of Food supplies to maintain high Prices to Consumers. Think on this rationale: Government allows all the Production Costs of raising Potatos (granting farmers all subsidies and Tax allowances), free farmers from monopoly restraints, encourages farmer destruction of Food supplies whose specific goal is making Consumers pay more, finally allowing farmers to deduct their losses of crop. Consumers get to pay higher Prices, Taxpayers pay higher Taxes, farmers make no better Living than previously when on simple Support Payments, Government raises the quantity of their deficit spending, and more People go hungry. Am I the One who is insane? lgl