Tax deductions are not the same as subsidies

newsroom@islandpacket.comApril 1, 2014 

The newspaper recently carried a column about corporate welfare by Nicholas Kristof of the New York Times. It was a perfect example of twisted liberal logic based on false premises.

Kristof asserts we can't debate welfare reform for the poor while large corporations and the rich are being subsidized by taxpayers. But taxpayers are not underwriting the cost of a yacht because the owner is allowed to deduct interest payments on the boat loan, nor are they subsidizing the cost of a corporate jet because operational costs can be written off against profits. The notion that tax deductions result in a loss of government revenue and equate to tax subsidies that must be paid for by everyone else is flat wrong. Gulfstreams are not subsidized, and yachts are not publicly supported.

Eliminating tax deductions for big spenders (or increasing taxes on the rich) does not mean government revenues will increase or that we'll have more to spend on child nutrition programs or public housing. Arguing the need for more money for the indigent doesn't mean corporate America isn't paying its fair share -- it proves liberal policies do not uplift the poor.

Here are two premises based on fact: The top 10 percent earners carry 70 percent of the tax burden. And liberals always want to pay more to those at the bottom rather than helping them move to the top.

Michael J. Raymond

Bluffton

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