Investing in the Stock Market - No, No, Not Me!!
OK,. Time for a serious talk. Tax Loop Holes, Good or Bad??
Like anything there can be exceptions, but for me I see Tax Loop-holes as a way to keep money in circulation. When you create an incentive to spend money you then create jobs. Simply put. If a business person has a business lunch and invites several prospects for a presentation. The lunch is a deduction for the business person. Some may look at this as a loop-hole., However based on a 30% tax bracket the person taking the deduction saves $300 for every $1,000 spent. More importantly a $1,000 is spent to boost the economy that otherwise, without the deduction, the business person may not have had the lunch.
Same is true with other business deduction. Then think of the interest deduction for mortgages some may say this is a tax loop-hole. I look at it as a way to help the Homeowner handle a mortgage, and creating more jobs in the housing industry. How about the tax deduction for people that buy a more efficient air conditioner? It not only benefitís the homeowner, but also conservers energy.. And creates jobs.
A business takes the risk of a business expansion, and the risk is shared by offering a tax deduction. Jobs are created, and money is spent that ends up as additional tax collected, and money circulated in the economy.
Those that think the tax loop-holes are bad are mostly those that pay little tax, and do not see why the wealthy should have tax loop-holes. Often referred to as class envy.
Bottom line many so called tax loop-holes actually create jobs, and keeps money in circulation. I say we need more tax loop-holes.
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