A discussion of race, politics, media and the like… What I see is what you get.

Infographic: Tax Breaks vs. Budget Cuts


On which side of this chart do you reside? Where should we focus our energies to reduce our deficit? Which side supports working families and which side supports big business…?

The chart below compares the 10 safety-net programs slated for deep cuts with the cost of the tax breaks that should also be considered for reduction or elimination to bring the budget into balance. The column on the left is a list of safety-net programs that have already been targets of the House leadership’s budget ax. The column on the right is the cost to specified tax breaks (see bottom of page for sources).

Most Americans would be surprised to learn that tax breaks are not on the table during any budget negotiations. In fact, Congress has the Congressional Budget Office prepare an official spending estimate for the cost of all programs or their expansions. Meanwhile, Congress enacts and continues tax breaks without any requirement that the cost of tax breaks be calculated and shared with members before a vote.

That’s why, over the last 16 years, the cost to the Treasury of the mortgage interest tax deduction, for example, doubled from $48 billion in 1995 to nearly $100 billion this year and no one made a peep about getting control of this loss in revenue. The stunning growth in this tax break is unchecked and unquestioned. – Donna Cooper (Center for American Progress)

via Infographic: Tax Breaks vs. Budget Cuts.

Advertisements

2 responses

  1. Pingback: Infographic: Tax Breaks vs. Budget Cuts « heartchasms

  2. lina Maria Clavijo

    At this time of economic constraints, tax breaks for big corporations don’t sound like the most encouraging fact. Every day in the media we listen about the climbing government budget deficit and the struggles to recover. Budget cuts in education; construction and many other sectors have become the dish of the day for government leaders causing a lot of discomfort for the tax-payers

    Recently GE’s imaginative practices and skills to find legal tax shelters raised some eyebrows and evidenced the need for a tax reform. While U.S. is one of the countries with higher corporate tax rates (35%), corporate tax revenue is low when compared to other developed countries. Corporations ability to find ways to reduce tax burden has driven corporate tax revenue to historical low levels. A tax reform that offers more competitive rates and fewer instruments to reduce contribution may be the answer. This could help budget -deficit reduction and stimulate the economy. A better-designed corporate tax reform not only will retain local investment but also will allow corporations to meet their profit responsibilities and shareholders’ expectations

    The controversy that GE tax benefit generated goes beyond the fact that a corporation is able to find ways to reduce taxes. This situation opens the discussion for a tax reform that will ultimately benefit the American society and economy.

    April 28, 2011 at 4:56 pm

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s