It seems that no matter what election is coming up the issue of taxes is always in the hot seat, whether someone is trying to lower or raise them. I have always been intrigued by the different ways to help boost the economy, and the latest plan that I have been hearing about may just be what we need. Why not avoid lowering or raising taxes all together? And with the unemployment rate still soaring I believe it is safe to say that creating jobs has not been an easy task and that perhaps we should be looking at other ways to help our economy.
This new plan being put forward is not going to be a walk in the park; as a matter of fact it might even be characterized as an upcoming "dogfight". Tax experts are urging Congress to rethink the almost 200 tax-breaks in place right now. Some of these 200 tax-breaks involve deductions for charitable contributions, deductions for state and local taxes and tax breaks for retirement savings. Some breaks more than others would hit closer to home, such as the mortgage interest deduction which in my opinion only promotes those with money to buy expensive homes instead of investing that money elsewhere.
Lowering these tax-breaks might seem harsh or maybe even unnecessary but it may be the final push we need to get out of this ditch. Most tax-breaks are categorized as savings, but most experts agree that in reality it is a form of spending. This "Spending" on tax breaks average almost 1 trillion dollars a YEAR!!! That's close to one-third the latest federal spending budget. Although we might have some difficulties adjusting to this new idea, I believe it is something this economy needs!
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