Jared Bernstein, notes some ways to reduce government costs through reductions in loopholes. Despite Republican efforts to pretend otherwise, a tax loophole is a way of spending Federal money. When the Government gives Exxon a tax loophole, it means other business or individuals must either pay more taxes or live with the costs of government borrowing. And these loopholes cost a lot over 10 years:
- $15,000,000,000 to allow hedge fund managers a specially low tax rate
- $46,000,000,000 to protect fossil fuel producers from solar and wind power competitors.
- $125,000,000,000 to tax stock dividend income at at only 15% instead of at the same rate as wages.
- $60,000,000,000 to subsidize second homes!
Consumer protection. To be fair, as the progressive critics of Dodd-Frank noted, America is still capitalist, there are many social and economic problems not solved by the bill, and the world is deeply unfair.
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