Mercury Rising 鳯女

Politics, life, and other things that matter

Number games

Posted by Charles II on July 13, 2007

Citizens for Tax Justice is the sharpest pencil when it comes to decoding the games that Bushco plays with taxes and budgets. From their newsletter:

Then there’s this:

President Bush is now touting projections that the federal budget deficit for fiscal year 2007 will be only $205 billion … The Center on Budget and Policy Priorities rightly points out that revenues have increased…but that always happens in an economic recovery, and usually revenues increase by more….

The only thing we would add is that the real deficit is bigger than $205 billion. …the Administration will borrow $180 billion from the Social Security Trust Fund this year to keep the total deficit as low as $205. …Not counting the Social Security surplus, this year’s budget deficit is really $385 billion.

And there’s this: 

Congress grants benefits to home-owners through the tax code in ways that would seem outrageous if they were provided in a more visible way through direct spending. The most prominent tax provision in this regard is the home mortgage interest deduction (MID). The poorer a family is, the less help this provision offers them. …In 2006 alone, the tax expenditure associated with the MID was $72.1 billion. Direct spending programs like public housing and rental vouchers for low-income families in 2006 totaled only $32 billion…. 

Estimates from the Congressional Joint Committee on Taxation indicate that the MID is regressive. Families with incomes of $50,000 and under are estimated to have made up about 61 percent of all returns in 2005 but received only an estimated 5.5 percent of the benefits of the deduction. By comparison, families with incomes of $100,000 and over made up around 14 percent of returns but received 68.5 percent of the benefits of the deduction. 

The MID has been accepted for decades as a valuable part of the tax code because it supposedly increases home-ownership and affordability. However, a new report by the Urban Institute suggests this sacrosanct deduction is not actually accomplishing these goals…

They also call to attention financial scams being run on the Washington state ballot initiative (a tax cap to cripple state government) and by Hawai’i’s Linda Lingle (corporate welfare for insurance companies.

Maybe there is financial sense in paying big corporations to move overseas. At a certain point, we’ll get our government back. 

One Response to “Number games”

  1. its a corporation run world! The government is just a different type of corporation!

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