Saluting with misty eyes
Ron- I say Rome, you say Gala.... in the end we're both talking about apples. I understand the rationale behind the tax credits: I have been known to benefit from a few myself... What I am talking about, here, is the fact that these people in specific (the ones I used as an example) pay no taxes to begin with... zero, goose egg, zilch, etc... and, yet, we end up giving them the benefit of a tax credit for something they don't pay.
Around my part of the world, homeowners are the ones who must pony up for the school taxes. My friend doesn't own a house, she lives in subsidized housing (which taxpayers pay twice the average local rent for; however, that is a separate issue). Her kids go to public school. She pays no education expenses other than pencils and paper. She doesn't pay income taxes as she has no income other than what the state pays her, and child support (the little her ex gives her). This woman's total tax burden is zero, and yet, she receives a check come tax time.
The descendant of the Iroquois nation has, by treaty, a zero tax liability... she has some document number that allows her to forgo the entire process of income taxes. He earns her living for herself and her family. No challenges with that. Her ancestors allowed her to have the benefit of not paying taxes (the wording is off, but stick with me, here), and I have no hassle with that. The hassle I have, again, is that she- with not a single dollar paid into the system- is getting money out of the system.
Bob- My challenges are listed above. I have no hassles if anyone uses the legal means (tax credits, etc) to get back money that they put in... as long as they put it.
Ok... let me try it this way:
The money we get back from our taxes is the government re-paying us money that we gave them in excess of what they asked us to give them. In essence, the overage is a loan to the government that they are paying back. They are giving us back money we put into the system.
The examples I listed- and the many others across this country who do the same- are getting repaid the loan they never made. They never put a dime into the system, and yet the system is handing them the cash back.
As for the Indians.... it is not fair to them to suggest that they should have done things differently when they were playing our game with our rules and no one to explain either.
(a quick aside- the welfare mother I listed above is graduating from the local community college this May, and should be able to get on her feet by the end of Summer. I would like to publicly- if virtually- shake her hand for a job well done).
As for the loopholes.... the more I read into the tax code and have it explained to me, the more I think Steve Forbes was right and a flat tax should be instituted. 15% of your income, single amount family deduction, go home. People who are single, with no dependents, and no deductions can do their taxes on a single sheet of paper... perhaps the rest of us could as well.
Another avenue is the bogus "subsidies" that we are giving people/companies. Notice, I said BOGUS subsidies... I am not including payments to the farmers who are getting $30/acre for soybeans and have 1000 acres (hence, netting $30,000 before having to pay for seed and fertilizer and farm equipment and family bills and...). I am talking about the oil companies who are only making a 2% profit (to the tunes of billions of dollars) and are getting help from the government. (No, I am not for a windfall tax... I give them enough cash, I do not wish to give them cash outside of my normal daily stop at the pump.) I am talking about not permitting the unions to have an exemption for the Cadillac Insurance Plan tax because they helped get the chief cook and bottle washer elected. (notice, I did NOT say I am against the unions themselves). I am talking about the politicians who get a new car every couple of years that the tax payers buy for them. I am talking about the 11 or 12 housing programs that don't work and yet are still being funded. I am talking about de-funding profit generating companies who still get money from the government.... and there are too many more to gripe about here.
There are places to make legitimate cuts (and not just lowering the increase and calling it a cut) to help, and no one seems to be truly interested. If any one of those over-paid bellhops were to truly care about doing their job, and not keeping the power they have so artfully stolen from their constituents, then this mess would be over.
Life's journey is not to arrive at the grave safely in a well preserved body, but rather to skid in sideways, totally worn out, shouting, "WHAT A RIDE