The Most Expensive Tax Breaks - E46Fanatics E46 BMW Social Directory E46 FAQ 3-Series Discussion Forums BMW Photo Gallery BMW 3-Series Technical Information E46 Fanatics - The Ultimate BMW Resource BMW Vendors General E46 Forum The Tire Rack's Tire Wheel Forum Forced Induction Forum The Off-Topic The E46 BMW Showroom For Sale, For Trade or Wanting to Buy

Welcome to the E46Fanatics forums. E46Fanatics is the premiere website for BMW 3 series owners around the world with interactive forums, a geographical enthusiast directory, photo galleries, and technical information for BMW enthusiasts.

You are currently viewing our boards as a guest which gives you limited access to view most discussions and access our other features. By joining our free community you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is fast, simple and absolutely free so please, join our community today!

If you have any problems with the registration process or your account login, please contact contact us.

Go Back   E46Fanatics > Everything Else > The Off-Topic > Political Talk

Political Talk
You may discuss anything regarding politics in this forum ONLY. If you cannot respect others opinions, your access to this forum will be removed.

Thread Tools Search this Thread Display Modes
Old 03-19-2013, 01:16 PM   #1
Registered User
Join Date: Apr 2007
Location: Virginia
Posts: 129
My Ride: 2001 M3 Coupe
The Most Expensive Tax Breaks

While many, particularly the GOP, have proposed cutting tax breaks as a way to balance the budget, I don't think any actually go so far as to detailing just what tax loopholes, errr, breaks they would cut, typically leaving it to the otherside to take on that unpopular task.

Well, here are the eight most expensive tax breaks, according to this article in Yahoo News:
  1. Employer Paid Health Insurance
    Five year cost: $760 billion
  2. Lower Rate For Capital Gains, Dividends
    Five year cost: $616 billion
  3. State And Local Tax Deductions
    Five year cost: $431 billion
  4. Mortgage interest deduction
    Five year cost: $379 billion
  5. Tax Free Medicare Benefits
    Five year cost: $358 billion
  6. Workplace Retirement Saving Plans
    Five year cost: $336 billion
  7. Earned Income Credit
    Five year cost: $326 billion
  8. Child Credit
    Five year cost: $292 billion
Total over five years: $3.5 trillion.

Since we here on this post are of stiffer moral fiber than those wishy washy politicians, just what breaks would you be amenable to eliminating? The Child Credit? The Capital Gains Lower Rate? None? Some? All?

In reality, once faced with cold stark realities, do you think Americans overall would actually accede to eliminating these breaks, abstract sentiments for cutting the budget notwithstanding? Inevitably, these "cut waste, fraud and abuse, and frivolous tax breaks" refers to other people's waste, fraud and abuse, and frivolous tax breaks, certainly not their own noble and worthy programs and benefits.

Or, when faced with these stark realities, do you think there might actually be even more for increasing revenues, i.e., taxes, particularly on wealthier individuals, that polling already indicates a clear majority of Americans want?

What might be the unintended (or intended) negative consequences of eliminating these breaks? Would they undercut are still fragile recovery (as austerity approaches arguably have done in Europe)? Might these be better gradually over time rather than some more cold turkey approach?

Last edited by Rhumb; 03-19-2013 at 01:17 PM.
Rhumb is offline   Reply With Quote
Old 03-19-2013, 01:25 PM   #2
casino is no lie
Registered User
Join Date: Jan 2012
Location: CDT
Posts: 76
My Ride: M54B30
I support deductions that benefit me.
casino is no lie is offline   Reply With Quote
Old 03-19-2013, 01:33 PM   #3
Registered User
Join Date: Dec 2007
Location: Saint Louis, MO
Posts: 848
My Ride: 2011 BMW 335d
I think there's plenty of room for modification outside of the black and white option of eliminating one, or the other. One also has to consider the ramifications of changes to these tax programs. For example, the main reason the Earned Income Tax credit is around is to keep low income families off of the government dole by way of food stamps/welfare/etc. If you limit or get rid of the EIC then all of a sudden we'll see certain welfare programs balloon even more. Medicare benefits are tax free, but getting tax money from these type of people is going to be like getting blood from a turnip.

There's an endless number of things that could be done to not only the aforementioned tax credits, but taxes on the whole. With that said, I would be for limiting the Child Tax Credit to 3 kids instead of it being unlimited. This would amount to an increase on low/middle income earners since the current phase out cap is around $110K. On the other hand, I would be for potentially reducing the mortgage interest deduction amount. As it sits currently an individual can deduct the interest on a maximum loan amount of $1,000,000. This would amount to an increase on the middle/upper income earners since people need a high income to afford a $1mm mortgage.

2014 Jeep Cherokee Trailhawk V6
2011 BMW 335d, 2011 BMW 135i, 2006 Mazdaspeed 6 GT, 2000 BMW 323ci, 2003 Evolution VIII, 1995 Nissan 240sx w/ SR20DET

Last edited by evolved; 03-19-2013 at 01:38 PM.
evolved is offline   Reply With Quote
Old 03-19-2013, 01:42 PM   #4
Registered User
Join Date: Mar 2009
Location: The bar
Posts: 340
My Ride: 330i

What benefits you individually doesn't benefit the macro side of our economy. Cutting taxes doesn't work unless the savings goes towards production, and it increases to counter the tax break.
CollinsE90 is offline   Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Censor is ON

All times are GMT -5. The time now is 12:10 AM.

Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
(c) 1999 - VerticalScope Inc. All rights reserved.