Political candidates that advocate lowering tax rates and closing tax loopholes often do not state which tax loopholes they want to close. Why is that? In the current political race, Mitt Romney and Barack Obama, Romney is not itemizing or stating any of the revenue loopholes he would close.
Romney is not the only one in past decades that has followed this path. Many candidates in the past are very quick to say they want to cut spending and cut tax loopholes, but they are often very adverse to list which spending programs and which loopholes they will close.
The reasons for that are very clear. Each spending program and each loophole represents a constituency, both amongst the citizenry, members of Congress and the Senate. These will be fiercely defended. The members of Congress and the Senate will very often speak highly of the spending cuts and cutting loopholes if it means to cut revenue rates, but they are particularly adverse to listing them.
The mortgage home deduction is an excellent example. If politicians were to eliminate the mortgage home deduction, they would meet fierce resistance by many lobbying groups, including Realtor associations, home builders, banks, mortgage companies and others. That deduction drives home purchasing and helps spur the economy.
Every other spending program would be fought. Even though it represents the evil Government spending, it means revenue coming into the state of that particular Congressman and that particular Senator. Each Congressman and each Senator would fight these deductions and eliminations to the end.
This is why the idea of eliminating loopholes sounds good, but to actually make it happen will be extremely difficult.
Loophole Closing Resources:
U.S. Department of Commerce – Helps american businesses become more innovative at home and competitive abroad.
U.S. Bureau of Economic Analysis – Provides statistics on consumer spending, corporate profits, travel and tourism and much more.
Entrepreneurworld – Resource for Entrepreneurs, including starting your own business, growing your business.
Bureau of Labor Statistics – Provides companies with up to date information on employment, demand, hiring, productivity and other information that may be useful to companies.
International Trade Administration – Creates jobs and economic growth by promotingU.S. companies abroad to governments in other countries.
More loophole closing resources:
Department of Labor – Provides information on many labor issues that can be useful to companies, such as insurance, regulation, wages, wage hours, compensation, safety and health
U.S. Patent and Trademark Office –U.S. office to file patents to protect a companies new or existing proprietary products.
U.S. Trade and Development Agency – Promotes U.S. Exports to Foreign Countries, please review if your company is interested in exporting goods to foreign countries.
E-Network for CEOs – Online articles and much more for CEO’s
Public Radio Planet Money – All issues money related to the public.
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