mwm@ea.UUCP (04/17/84)
#R:uiucdcs:29200124:ea:10100031:000:540 ea!mwm Apr 17 15:46:00 1984 /***** ea:net.politics / iuvax!note / 8:19 am Apr 12, 1984 */ The fundamental inequity involved in this type of tax deduction is that it will benefit those with more income more than those with less. tim sevener Indiana University, Bloomington pur-ee!iuvax!scsg /* ---------- */ You've said this several times, tim. Please, tell us how a tax deduction (i.e. - anything that allows someone to pay the government fewer taxes) can possibly NOT benefit those who pay more taxes more than it will benefit those who pay fewer taxes? <mike
renner@uiucdcs.UUCP (04/23/84)
#N:uiucdcs:29200124:000:1650 uiucdcs!renner Apr 9 23:17:00 1984 tim sevener (iuvax!scsg) writes: > ...Enormous sums also go for "tax expenditures". These are the tax > deductions which allow the wealthy to avoid paying taxes... Perhaps a few facts will help in understanding this issue. My source is the U.S Statistical Abstract (1982-3), table number 425: "Revenue Loss Estimates for Selected 'Tax Expenditures' by Function, 1981 and 1982," page 252. All figures are in millions of dollars. The question here is: can "tax expenditures" be accuratly described as tax deductions which allow the wealthy to avoid paying taxes? In 1982, total tax expenditures were 252,620. Many of these categories are tax deductions which in my opinion benefit the average middle-class citizen and are hardly designed as loopholes for the rich; these total 157,980. I list a representative sample below: Deductability of mortgage interest and property tax on owner-occupied homes . . . . . . . . . . . 20,035 Deductability of non-business State & local taxes other than on owner-occupied homes . . . . . . . . 20,395 Deductability of charitable contributions (total) . . . . . . . . 10,600 Deductability of medical expenses . . . . . . . . . . . . . . . . 3,925 Exclusion of Social Security benefits (total) . . . . . . . . . . 12,180 Exclusion of other retirement/disability/unemployment benefits . . 5,695 Residential energy suppy & conservation credits . . . . . . . . . 620 CONCLUSION: A rather large majority of tax expenditures benefit middle-class individuals. Characterizing them as writeoffs for the wealthy is a misrepresentation of the facts. Scott Renner {ihnp4,pur-ee}!uiucdcs!renner