Discuss Question 22
22. FISCAL KNOWLEDGE: Tax expenditures in the Internal Revenue Code (e.g. deductions, exemptions, credits and exclusions) result in over $1 trillion in lost federal revenue each year.
ANSWER: True – According to analysis by the Joint Committee on Taxation, it’s estimated that the federal government forgoes over $1 trillion dollars in revenue each year due to various forms of tax expenditures (deductions, credits, exemptions, and exclusions). Some of the most costly of these include the exclusion from taxation of employer-provided health insurance, and the deduction of mortgage interest on owner-occupied residences.
I guess I got this one wrong. Taxation is quite a topic and will always lead to the ultimate IQ Test for Americans generations to come. Today, we’re at a turning point in our history. We must look at our historical record and those documents that the founding fathers left to US as a legacy to Liberty if we are to get the nation back: Remember that among the the purposes for creating a federal government was to protect our Lives, our Liberty, and our Property (the pursuit of happiness)? Well, as far as the current tax code is concerned, “Zero Bracket” sums it all up folks! We have “Zero” property under the present tax scheme. Any amount of cash that you bring home to put bacon on the table that is more than nothing (Zero) is actually subject to taxation, up to 100%, depending on the entitlements that congress grants. It was not always this way in the U.S. of America, except on the planations, but that’s a long story. Read the Documents! Understand the history.
I have to disagree with the question in whole. I do not believe the government should be stealing my money in the form of taxes, therefore the answer is false as I do not recognize the government returning my money to myself as the government loosing revenue. If a bank robber is caught do we say well if he wasn’t caught he could have increased revenue? No, why? Because that would be ridiculous. With all the social welfare recipients taking our money why should we not want every dime back of our hard earned money we can get? Wouldn’t a better question be about stopping the “income” tax altogether and operating the federal government in line with the constitution where we aren’t raped financially for actually working?
People keeping their own money that they earned shouldn’t be considered lost federal revenue. Lost federal revenue is govt spending on wasteful programs.
More propaganda. It is not “lost revenue” if it was not legally taxable. The very concept of “lost revenue” assumes that somehow that money belonged to the government (the Progressive/Socialist outlook), and that they “gave it up by allowing those exceptions.” That is entirely a Marxist position, and utterly in violation of the word and intent of our Constitution (which was crafted to PROTECT our personal property from confiscatory taxes).
If the government institutes a tax of 100%, then relents and lets you keep 20%, it that lost revenue? Tax reform is a great idea, but it’s spending that needs to be reduced, not tax deductions. Our lives are arranged on long-term decisions that involve tax rules, e.g., deductibility of mortgage interest. We don’t need the rug pulled out from under us.when our buying power is already trashed by the actions of the Federal government.
If it is mandated by law, such as insurance (auto, health etc.) then it should be a tax deduction, and therefore is not a ‘ loss of revenue’ as stated in the question. A ‘loss of revenue’ would be when someone (person, corperation, company, or other entity subject to taxation) doesn’t pay the prescribed taxes allocated by law. Using that logic, all charitable contributions of time, money, materials, et al, are a ‘loss of revenue’.