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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.

 

1 Responses to “Discuss Question 22”

  1. Jim Joyce says:

    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.

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