Tax Subsidizing the American Consumer

by watson 22 Replies latest jw friends

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  watson

  It's interesting to me how much of our taxes go to subsidizing the great American Consumer. (Me included).

  I detuct for mortgage interest on my first home, and if I buy a second home or anything that resembles a second home, I can deduct the interest on that as well. If I can afford a second home, recreational vehicle, etc., why would I be given a tax break?

  Just wondering how much we could affect our growing deficits if subsidization was really looked at critically. (There is talk)

  May be too close to the weekend for a topic like this, but hey!!
• 

  leavingwt

  How about the subsidies to the non-American consumer?

  http://cis.org/child-tax-credits

  Each year, the IRS sends illegal immigrants more than $1.5 billion.
• 

  journey-on

  Without getting into a deep economic discussion, simply put:

  People buy homes many times FOR the tax deduction. It keeps the real estate market fluid and encourages home ownership. Tax deductions of any kind stimulate the economy all the way around.

  Deficits should be cut by decreasing the spending in Washington and encouraging an environment that benefits businesses and job growth. More people working in the private sector (real jobs....not government jobs), more tax dollars.
• 

  watson

  Do you feel that we can pull our future generations out of this hole, but cutting spending? Isn't NOT allowing tax deductions on optional "conumer" benefits a way to cut spending?
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  journey-on

  Isn't allowing tax deductions on optional "conumer" benefits a way to cut spending?

  No. It's a way to hinder the consumer. It cuts the consumer's spending. Not good for the general economy.
• 

  leavingwt

  
• 

  watson

  So basically what is being said is that we will need to cut services, etc., so that I (the consumer) can buy more 2nd homes? I have been looking at my personal financial situation and I can honestly say that whether or not I can deduct the interest on a second home or recreational vehicle isn't going to keep me from buying it. Seems like a small sacrafice. I wonder what effect removing this 2nd deduction would have on us.

  I know one thing, that deduction really helped the big housing boom, that's for sure. How's that going, anyway?
• 

  watson

  "Buy Bonds," yeah..LOL.
• 

  leavingwt

  Watson: This is slightly off-topic, but 80% of the homes in Las Vegas are "underwater". This is perhaps a bigger issue than the tax deduction. People cannot pay their mortgages and their homes are woth less than what they owe.
• 

  Berengaria

  Isn't allowing tax deductions on optional "conumer" benefits a way to cut spending?

  No. It's a way to hinder the consumer. It cuts the consumer's spending. Not good for the general economy.

  So how is that any different than consumer's who work in those fake government jobs using their paychecks to spend?