Reuters thinks that tax breaks and loopholes "costs" government its tax receipts. This is a perfect example of class hatred ginned up by the media to further class warfare between Americans. The absolute truth is that if people use the tax code to limit their tax burden they are not costing the government anything, but are using legal means to avoid a higher tax burden. Further, our money is NOT the government's property in the first place so a lower tax take is in no way "costing" the government anything. Yet, Reuters still uses this class warfare rhetoric to report its story revealing its attack-the-rich agenda.
The Reuters headline employs the class warfare rhetoric right off the top screaming, Tax loopholes seen costing billions annually. "Costing"? No, if tax receipts are lower it isn't because people are depriving government of due receipts. Again, it is because taxpayers are obeying the law and properly using the tax code as crated by Congress. If there are loopholes in the tax code they were placed there by Congress, whether wittingly or unwittingly, but still it’s the fault of Congress not “the rich.”
The first paragraph gins up the class warfare rhetoric to an even higher level.
Tax and accounting loopholes that largely benefit rich taxpayers and companies cost the government $20 billion a year even as the pay gap between chief executives and employees has widened, two groups said on Monday.
Ah, so it "benefits the rich"? You mean, the eeeevil, eeeevil rich Reuters? Again, if there are such loopholes, it is the fault of those who wrote the code, not those forced to abide by it. Yet the "rich" and their accountants somehow get this blame?
The rest of this Reuters agenda driven piece is filled with even more examples of class warfare rhetoric aimed to make those in the lower classes hate those Americans who make more. Here are some examples: (bold emphasis mine)
- The biggest loss comes from a "stock option accounting double standard"...
- That practice alone costs the U.S. government $10 billion a year...
- A practice known as deferred compensation... costs the government $80.6 million a year...
Lastly, Reuters gave us a quote from an author of the report they are quoting.
"It's outrageous that our tax dollars are inflating executive paychecks," said Sarah Anderson, an author of the report. "Surely in these troubled economic times we can find better ways to spend our nation's wealth."
Sorry, Miss Anderson, but our tax dollars are not "inflating executive paychecks." These corporate leaders are using legal means to lower their own tax burden, something all of us do when we can.
If Miss Anderson and her pals at Reuters want to see corporate leaders pay more taxes, then the burden is on Congress to change the laws. No finger wagging should be aimed at the taxpayers legally observing the tax codes, “rich” or not.
But, then, we wouldn't have that wonderful opportunity for Reuters and their ilk to gin up class warfare between Americans, then, would we? Yes, if the truth were reported, then there would be a “cost” to it. It would “cost” Reuters one of their favorite divisive tactics to stir hatred between Americans.
Editor at Large
Comments Policy
...according to the
August 25, 2008 - 20:55 ET by MidAmerica...according to the Institute for Policy Studies and the group United for a Fair Economy.
hhmmmm These are lefties. Noam Chomsky is a senior scholar for the IPS. They view all wealth as the 'nation's wealth'. So in their world view tax cuts do 'cost' the government. But... their hypocrosy is that these groups are registered as non-profits. They are costing the government!
That's just weird
August 25, 2008 - 20:56 ET by 10ksnookerI didn't know we all worked to maximize government's revenue. I always thought it was life liberty and the pursuit of happiness that was the goal. Individual liberty with government being a necessary aside evil.
Rooters has always had odd views of the world, and fake photos.
The biggest loss comes from
August 25, 2008 - 22:45 ET by jdhawkThe above is outrageous. The facts are that corporations are not a taxing entity per se. They are the conduit through which stockholders pay tax BEFORE they pay it AGAIN on dividends, interest and capital gains.
Also, as you earn more and more income from a paycheck, it is impossible to avoid outrageously high income taxes. As you go above $150,000 the Alternative Minimum Tax (your mileage may vary) kicks in. As you ascend to $300,000, there are little or no offsets like mortgage interest, etc. You end up paying over 39% of your earned income to the federal government. Next, comes the state tax. In California, it is 11%! It doesn't end there, there are excise taxes, property taxes, sales taxes, 15.3% up to the first $106k this year in FICA and Medicare, you-name-it taxes (check out the tax on a $300 airline ticket - 1/3 of the price will be in taxes; stay at a hotel and pay 10-15% "special tax" in some jurisdictions). The average high wage earner, per above, pays over 60% of their wages in taxes by the end of the year. In other words, it takes until the end of July every year to pay all taxes before they begin to put a dime in their pocket!
The above is why a certain percentage of Americans are simply "opting out." In other words, while illegal aliens stream over our southern borders, they are going to the Caribbean to live and renouncing their citizenship - reducing their tax bite to almost zero and reducing the number of years that they have to work by 10 and even 15 years!
Corporations are doing the same thing. They are moving their headquarters to a low tax country. Then, instead of paying taxes on income from operations in the US, plus being taxed a percentage of income from their foreign operations, they are paying taxes on their U.S. operations and very little additional taxes. Whether they do the above or not, taxes are so onerous that it is an incentive to beef up foreign operations at the expense of U.S. operations.
Given the above, is it any wonder that when taxes are lowered, government receipts go up? It works every time. Yet, you will never ever get a dimocrat to admit that this simple formula works.
Here's a thought
August 26, 2008 - 07:19 ET by BayshoremanHere's a thought for Reuters to report on...let's rid ourselves of an unfair tax basis that is costing both our government and ourselves countless tens of billions of dollars a year. How? Eliminate INCOME as the main basis of our tax code and replace it with a Value Added Tax (VAT) based on purchases made.
Maybe Ms Anderson should pitch that idea to some of her trust-fund liberal politicians like the Kennedy's and the Rockefeller's and see what they think about the fairness of our tax system.
Ahem, ahem, who created the
August 26, 2008 - 08:25 ET by dscottAhem, ahem, who created the so called tax loop holes???? Congress criters. Why did they create them? Because Congress regularly uses the tax code to influence the spending decisions of individuals to serve society's interests. The point of any so called tax loophole/deduction/tax credit is to achieve government policy via the private sector when government action would be totally counterproductive, ineffective or grossly inefficient.
btw, the biggest most egregious loop hole draining the US Treasury is the domestic drilling ban. We loose literally billions of dollars every year due to the incompetent pandering to environmentalists. All oil that is not produced domestically must be imported and thus we loose the taxes and royalties to foreign governments. We have not saved one drop of oil from the drilling ban, NOT ONE. Here's a rational thought the libs have not entertained, let the drilling ban expire in September and let the oil and gas companies, drill, drill, drill. Watch the tax revenues pour in and the price of oil drop, and walla, the economy gets moving.
Nancy Pelosi and Harry Reid, starving the poor one gallon of ethanol at a time. Fill your tank with E85 and cull a village.