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Monday, October 25, 2010

Tax breaks are useless to me.

I'm bothered by the government promoting products by giving them tax breaks. Maybe that's just because I already don't pay income tax. When I see an item promoted by a tax break, I wonder how much the price has been raised.

For example: let's say they are selling an energy efficient do dad for $500, with a tax break of $100. In the end, after struggling with the paper work, the item costs $400. Would the do dad be selling for $500 if it didn't already have a tax break built in? Maybe they'd be selling it for $400 anyway, and the extra $100 is a rip off? No way to know, I guess. If I do buy a product with a tax break, which I don't get, I assume I'm paying too much for it.

Then there is the Chevy Volt. As I understand it, there's a $7,500 tax break for buying the car. So lets see here, GM (Government Motors) has to give away $7,500 from the public coffers to sell a fairly expensive car of dubious performance. If it was any good, they wouldn't have to give tax breaks to sell it. Does not inspire me at all.

Working poor shouldn't even be paying income tax. It would make more sense to raise the top tax rates a tiny amount to make up the difference. Put a few extra dollars in the pockets of the working class and that money is going to get spent. It'll circulate around the economy. Take a few dollars extra away from the ultra rich, and maybe they won't expand that factory in China. How does that hurt the US? It's not like they've been expanding factories and hiring people in America.

-Sixbears

7 comments:

  1. Makes me think of all the things that are on sale !!!???. The dress that is $80 brand new when it first comes in the store and then is sold just a few months later for $20. That's a big profit margin. I very rarely buy anything new and definately not at full price if I can help it. Cheers, Wendy

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  2. You're kinda being overly paranoid on this one.

    The seller still gets the $500, so it's not that it would have been $400. You pay $500 to the seller, and get $100 taken off your taxes. In effect, the Feds pick up part of the bill.

    This is a way for the Feds to encourage you to buy energy efficient lights, or windows or insulation without making them a "mandate" which will make unstable wingnuts dress like Paul Revere and misquote the Founding Fathers and call the President a Socialistt/Marxist/Fascist and vote for Palin.

    And you don't need to make all that much money to pay taxes. I'd love a break on mine. If you want to buy a new solar panel that has a tax break, give me the money, I'll buy it for you, take the tax credit and we'll split the savings.

    Yes, there are rip offs aplenty. This isn't one of them.

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  3. The government promotes their pets (mortgage interest deduction, for one, helps their banker masters), and attempts "social engineering" (cigarette/booze taxes, etc.). They steer us through our wallets (or at least try to) in the direction they want us to go. And soon, we will be steered to government "healthcare". We'll be pushed into cities (carbon taxes). And be forced to accept one world government (financial crash, "terrorism", pandemics, food "safety", etc...). Not too hard to see if one is looking.

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  4. "In effect, the Feds pick up part of the bill?"

    Sorry, the Fed's pick up nothing, we the tax payers pick up the tab. Tax incentives are a direct screw job to the tax payers!

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  5. Ah, must have forgotten my tin foil hat. None of this was making sense,

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