The Values of Tax Loopholes

Welcome to The New Coffee Room. We hope you enjoy your visit.

You're currently viewing our forum as a guest. This means you are limited to certain areas of the board and there are some features you can't use. If you join our community, you'll be able to access member-only sections, and use many member-only features such as customizing your profile, sending personal messages, and voting in polls. Registration is simple, fast, and completely free.

Join our community!

If you're already a member please log in to your account to access all of our features:

The Values of Tax Loopholes; Top Ten
Tweet Topic Started: Nov 20 2012, 01:54 PM (356 Views)
Axtremus	Nov 20 2012, 01:54 PM Post #1
HOLY CARP!!! Posts: 35,700 Group: Members Member #15 Joined: April 18, 2005	Source: http://www.politico.com/news/stories/1112/84065.html?hp=r1 Top Ten Tax Loopholes by Value (compiled using figures by the Joint Committee of Taxation, figures cited below are "per year"): Exclusion of employer-sponsored health insurance — $164.2 billion Exclusion of employer pension benefits (includes 401(k)) — $162.7 billion Mortgage interest deduction — $99.8 billion Exclusion of Medicare benefits — $76.2 billion Lower capital gains rates — $71.4 billion The earned income tax credit — $58.4 billion Deduction of state and local income taxes — $54 billion Exclusion of gains at death and the gift carryover exclusion — $51.9 billion Deduction of charitable contributions — $51.6 billion Exclusion of employer benefits under "cafeteria plans" — $43.8 billion Total of the top 10: $834 billion



Copper	Nov 20 2012, 02:46 PM Post #2
Shortstop Posts: 29,905 Group: Members Member #426 Joined: February 14, 2007	I think most of those make sense and probably shouldn't be "closed". I don't think I care much about "cafeteria plans", but other than that I think in general it's good that the others exist. Most tend to reward things that are good for the country. Some are charities that probably make sense.
	The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy


Renauda	Nov 20 2012, 03:04 PM Post #3
HOLY CARP!!! Posts: 10,507 Group: Members Member #505 Joined: September 5, 2007	Axtremus Nov 20 2012, 01:54 PM [*] Mortgage interest deduction — $99.8 billion The Case Agaianst the Mortgage Interest Deduction The US can live without it.



Copper	Nov 20 2012, 03:33 PM Post #4
Shortstop Posts: 29,905 Group: Members Member #426 Joined: February 14, 2007	Quote: First, as explained above, the mortgage interest deduction has little value for lower- and middle-income families, those most likely to be on the borderline between rental and ownership. A subsidy worth $215 a year is not going to move many $40,000 families out of rental housing into a home of their own. Neither would a tax increase of $5,000 a year be likely to induce many millionaires to move out of their own homes into rentals OK, so he has covered the 1% on each end. But the mortgage interest deduction is a good thing for the 98% in between. It's good for a lot of reasons that he just ignored.
	The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy


Renauda	Nov 20 2012, 03:48 PM Post #5
HOLY CARP!!! Posts: 10,507 Group: Members Member #505 Joined: September 5, 2007	If Copper thinks it's a good thing then it definitely should be abolished. http://www.forbes.com/sites/beltway/2011/03/01/if-congress-revamped-mortgage-interest-deduction-most-taxpayers-would-come-out-ahead/ http://www.bloomberg.com/news/2012-08-30/romney-can-take-his-dad-s-idea-and-cut-mortgage-tax-break.html



ivorythumper	Nov 20 2012, 04:08 PM Post #6
I am so adjective that I verb nouns! Posts: 50,666 Group: Members Member #164 Joined: April 24, 2005	Renauda Nov 20 2012, 03:04 PM Axtremus Nov 20 2012, 01:54 PM [*] Mortgage interest deduction — $99.8 billion The Case Agaianst the Mortgage Interest Deduction The US can live without it. It seems to me a matter of course that when ever the government intervenes in the market (esp with legislation and tax policy to promote or prohibit/ punish behaviors) it causes both privilege and price escalation. But it also seems that the price escalation in real estate has already occurred, and people would be materially harmed now if the gov changed the terms now.
	The dogma lives loudly within me.


Renauda	Nov 20 2012, 04:10 PM Post #7
HOLY CARP!!! Posts: 10,507 Group: Members Member #505 Joined: September 5, 2007	Too bad. Abolish it.



ivorythumper	Nov 20 2012, 04:11 PM Post #8
I am so adjective that I verb nouns! Posts: 50,666 Group: Members Member #164 Joined: April 24, 2005	Renauda Nov 20 2012, 04:10 PM Too bad. Abolish it. It doesn't matter.
	The dogma lives loudly within me.


Copper	Nov 20 2012, 04:31 PM Post #9
Shortstop Posts: 29,905 Group: Members Member #426 Joined: February 14, 2007	Renauda Nov 20 2012, 03:48 PM If Copper thinks it's a good thing then it definitely should be abolished. You usually sink to that after only one post, this time you made it to two posts. Our little boy is growing up!
	The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy


Renauda	Nov 20 2012, 05:14 PM Post #10
HOLY CARP!!! Posts: 10,507 Group: Members Member #505 Joined: September 5, 2007	The more Larry wails on Kathy Kollontai the more I'll wail on you so ~~fvck off~~ you can kiss my arse... I loathe you, Copper. Loathe you. As for the mortgage deduction it should be abolished. First, it encourages people to spend beyond their means. Secondly it empowers the IRS to sieze people's private property with impunity because it provides the g'ovt with a fiscal means to walk in your front door and put a wax seal on the lock regardless of joint ownership property. You think you're getting a deal, well, you're not. Wake up, you've been duped.



Copper	Nov 20 2012, 05:25 PM Post #11
Shortstop Posts: 29,905 Group: Members Member #426 Joined: February 14, 2007	Renauda Nov 20 2012, 05:14 PM The more Larry wails on Kathy the more I'll wail on you. As for the mortgage deduction it should be abolished. It also encourages people to spend beyond their means. All to does is empower the the IRS to sieze people's private property with impunity because it provides the g'ovt with a fiscal means to walk in your front door and put a wax seal on the lock regardless of whether it is jointly owned property. You think you're getting a deal, well, you're not. Wake up. I've told you before your wails are all yours, not Larry's not kathy's not mine, stand up. The most important thing is that it gives more people a path to ownership. That overrides virtually all the bad stuff. A guy with a deed in his pocket after thirty years is much more important to the economy than a dozen guys with 30 years worth of rent receipts. It encourages all the right stuff, hard work, saving, planning. It gives the owner a sense of worth and control. These are things that are essential in the United States and maybe not so important elsewhere. We have hope. And the best immigrants from around the world come here to get a piece of it.
	The Confederate soldier was peculiar in that he was ever ready to fight, but never ready to submit to the routine duty and discipline of the camp or the march. The soldiers were determined to be soldiers after their own notions, and do their duty, for the love of it, as they thought best. Carlton McCarthy


Renauda	Nov 20 2012, 05:29 PM Post #12
HOLY CARP!!! Posts: 10,507 Group: Members Member #505 Joined: September 5, 2007	Repeal it. As usual you're taking nonsense, Copper. It's an undeserved entitlement. A ruse. Quote: It encourages all the right stuff, hard work, saving, planning. It gives the owner a sense of worth and control. These are things that are essential in the United States and maybe not so important elsewhere. We have hope. And the best immigrants from around the world come here to get a piece of it. Unmitigated BS. You have no clue. We receive first rate immigrants as well; the best you'll ever encounter. Fix your quote of my post #10- I edited to reflect what I really think.



Horace	Nov 20 2012, 06:54 PM Post #13
HOLY CARP!!! Posts: 17,885 Group: Members Member #101 Joined: April 20, 2005	What an odd definition of loophole - apparently they think it's synonymous with "deduction". That's a perversion of the word. Well specified and intentional deductions are no more loopholes than the fact that lower incomes pay less tax than higher incomes is a "loophole" for low earners.
	As a good person, I implore you to do as I, a good person, do. Be good. Do NOT be bad. If you see bad, end bad. End it in yourself, and end it in others. By any means necessary, the good must conquer the bad. Good people know this. Do you know this? Are you good?


Axtremus	Nov 20 2012, 07:33 PM Post #14
HOLY CARP!!! Posts: 35,700 Group: Members Member #15 Joined: April 18, 2005	Horace Nov 20 2012, 06:54 PM What an odd definition of loophole - apparently they think it's synonymous with "deduction". That's a perversion of the word. Well specified and intentional deductions are no more loopholes than the fact that lower incomes pay less tax than higher incomes is a "loophole" for low earners. Agree that it is a perversion of the word. Unfortunately, that's also the word politicians use -- when you hear a politician says "loopholes," yes, he does mean to include well specified and intentional deductions (and tax credits, too).



Steve Miller	Nov 20 2012, 08:04 PM Post #15
Bull-Carp Posts: 7,637 Group: Members Member #25 Joined: April 19, 2005	Renauda Nov 20 2012, 05:14 PM As for the mortgage deduction it should be abolished. First, it encourages people to spend beyond their means. Secondly it empowers the IRS to sieze people's private property with impunity because it provides the g'ovt with a fiscal means to walk in your front door and put a wax seal on the lock regardless of joint ownership property. You think you're getting a deal, well, you're not. Wake up, you've been duped. Not following you here. Elaborate?
	Wag more Bark less


Renauda	Nov 20 2012, 08:44 PM Post #16
HOLY CARP!!! Posts: 10,507 Group: Members Member #505 Joined: September 5, 2007	Glad you pointed it out Steve. I just don't think interest on primary home mortgage should be a fedral tax deduction. Likewise state/provincial and municipal taxes paid. Any deduction that is claimable gives the tax department a future stake in the property should you ever have tax problems and insolvency. That is one of the reasons we do not have such a deduction for primary residence in this country. Our house is off limits to the tax man should he ever come knocking.



Axtremus	Nov 20 2012, 09:22 PM Post #17
HOLY CARP!!! Posts: 35,700 Group: Members Member #15 Joined: April 18, 2005	Any advantageous tax treatment for loans taken out to purchase, say, precious metals, precious gems, automobiles, art works? Any of these off limit to the tax man?


« Previous Topic · The New Coffee Room · Next Topic »