Wealthy win lion's share of major tax breaks

[Redfairen]

Source: Associated Press

Wealthier households benefit significantly more than lower earners from big tax breaks such as deductions for mortgage interest and charitable giving, the government said in a study Wednesday.

More than half the benefits of 10 major tax breaks go to the one-fifth of U.S. households at the top of the income scale, according to the Congressional Budget Office.

.......


The report was ordered up by Rep. Chris Van Hollen of Maryland, the top Democrat on the House Budget Committee.

The report ‘‘shows that tax breaks are skewed in favor of the top 1 percent of Americans at the expense of other priorities,’’ Van Hollen said in a statement. ‘‘It’s clear that we can limit unproductive and excessive tax preferences for the very wealthy as part of a plan to reduce the long-term deficit and promote long-term economic growth.’’


Read more: http://www.boston.com/business/news/2013/05/29/wealthy-win-lion-share-major-tax-breaks/Ua0UyYle21EUXub7g1suCI/story.html

[Fuddnik]

1. Agreed.

I can't even write off my mortgage interest or property taxes anymore.

The standard deduction dwarfs them both.

[applegrove]

2. Jon Stewart said it last week. Who put the tax breaks in the tax code? The poor? Not!

[fascisthunter]

3. actions, not words

here's proof of who works for who. Money buys all... nothing is sacred, and there is no democracy in this country.

[ck4829]

4. These wealthy people need some skin in the game.

[Pterodactyl]

5. Including charitable giving in there is odd.

If a rich person gives lots of money to charity, that's the sort of thing we ought to encourage. Of course the rich will often be more capable of charitable donations than the poor, but that's just math.

[timdog44]

10. Charity donations

should be charitable. Not deductible. I never deduct from my taxes any moneys or property that I give to charity. Not a pat on the back - just a fundamental statement about what charitable giving is all about.

[Pterodactyl]

11. The way I look at it, being able to deduct allows me to donate more.

[Doctor_J]

6. It's 13D chess

you just don't understand 8th grade civics. You never liked him

[BootinUp]

7. Thanks AP, I was too stupid to figure this out before

[4dsc]

8. And what tax cuts would poor people get instead?

Why doesn't this seem out of place as the people making the money are the ones that would have their taxes cuts the most. While I don't agree with cutting their taxes more it just makes sense.

Unless you cut regressive taxation, which isn't what this article is speaking too, you don't have a case here. Most regressive taxation is done on the state level.

[One_Life_To_Give]

9. Tax Breaks are about directing where the rich put their money

Tax breaks should only be used as a sweetener. To direct where people invest their money where it will have a more desirable public. Yes they get the tax break from tax exempt municipal bonds. On the other hand property taxes and/or federal aid for local projects is reduced due to the municipalities reduced borrowing cost. If you want business to invest in R&D you make a tax break for it, etc.

We trade a little direct tax revenue to get a certain amount of private funds spent in a way that is a public benefit. The real question is which ones do/do not provide a public benefit equal or greater than the tax offset.