Do you think we should eliminate some tax writeoffs?

Question

If we eliminate some tax writeoffs, wont that provide some more income for the government? Its no secret that during tax season, people search for as many write offs as they can to avoid paying more taxes or to get a bigger refund check. If we eliminate some of them(not all of them), would that help get the Government in the black or perhaps they can put the extra money into the social security fund? I dont know, just trying to come up with ideas.

Answer 1

Sure, I agree that there are some that should be eliminated. The problem is that my list is probably different from your list - and pretty much each congressman would probably have a different list too.

Answer 2

Maybe it would help and maybe it would hurt. For example, eliminating the home mortgage interest and property tax deductions would adversely impact the housing industry, especially for larger homes where those deductions have much more value.

The Tax Code isn't used solely to raise revenues for the government, but as an instrument of social change and a means to redistribute wealth. Home mortgage interest and property tax deductions are an example of the former and the Earned Income Credit is an example of the latter.

The problem with the Tax Code isn't tax writeoffs so much as in its complexity. If you gave a complex tax return to a dozen senior IRS auditors and a dozen highly qualified and experienced tax professionals, you'd probably get 2 dozen different tax liabilities and in all two dozen cases the preparer could justify the correctness of the return, probably well enough to have it stand up in court! THAT is what needs to be fixed.

Answer 3

Which ones should we eliminate? The ones that benefit me but not you or the ones that benefit you but not me? No matter how you cut it, you are advocating a tax increase that is not necessarily good or bad, just politically unpalatable right now.