August 16, 2011
Is There Any Case for Revenue Enhancements?
Is There Any Case for Revenue Enhancements? The short answer is 'yes'. I must admire the newest political speak from the ruling elite that cannot even bring themselves to utter the words 'tax increase'. 'Revenue enhancement' includes more than just increases in the statutory rate; it includes an increase in revenue from the elimination of deductions and from taxes on new sources. The contentious debate on this issue usually does not distinguish between the statutory tax rates, the rates stated in the code, and the effective tax rates which is actually the percent paid after deductions and credits. The effective tax rate is less consistent since the various credits and deductions are not evenly distributed. The prime objective of many lobbyists is tax breaks for their narrow constituency. The increasingly progressive nature of our taxes, a trend that accelerated under George Bush, carried two liabilities. As tax revenues became more dependent on the wealthy, the...(Read Full Post)