Corpo Tax Breaks Finally = Discretionary Spending


What that means is that all the money the govt has to spend exclusive of fixed costs is now equal to the amount of money in tax breaks given to corporations. Dig:

In 2013, the cost of tax breaks was equal to the entire U.S. discretionary budget [1]. However, the discretionary budget is subject to an annual appropriations process, where Congress debates the proposed spending. Tax breaks, on the other hand, remain on the books until lawmakers modify them. As a result, over a trillion dollars a year in lost revenue – more than 1.6 times the 2013 budget deficit – goes largely unnoticed.

tax-breaks

 

The cost of corporate tax breaks has trended upward in recent decades, totaling nearly $176 billion in fiscal 2013. In other words, the overall U.S. corporate tax bill was $176 billion lower than it would have been without the special deductions, credits, and exclusions written into our tax code. To put that in perspective, that’s about $1,328 per U.S. household. [2]

 

Which is bad news, right? Wrong! Look at that other box. That’s the deficit and it’s only 2/3 what the tax breaks are worth. So, when you get all frantic anxious about how the deficit is ruining the economy like FauxNews keeps telling you, just know that we can fix it in a single year by canceling some – not all, just some – of the tax breaks corporations that don’t actually need them have blackmailed the Congress into. See, easy!

Oh, who am I kidding? This will never happen. Case in point, a Republican named David Camp, Chair of the House Ways and Means Committee, and Paul Ryan at the House Budget Committee have both submitted Tax Reform bills intended to “reform” the tax code to varying degrees. What? Republicans reforming the tax code to eliminate corporate tax breaks? Has the world turned upside down?

All of them claim to “reform” a discredited cesspool of a tax code, of course, but they have also been submitted in an election year. The GOP, if it knows nothing else (and it doesn’t), knows how to get credit for proposing popular legislation they don’t actually want at a time when there is no chance whatever for it to pass.

It doesn’t matter how easy the fix is if the fix is anathema to the Congress’ owners.

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