Thursday, November 4, 2010

The right way to reduce taxes

To Reduce Taxes, We Must Abolish Our Tax Breaks

by John Tamny, Toreador Research and Trading (VE Guest Contributor)

After preparing my taxes last year, my accountant noticed my horror and responded that “You’re not playing the game right. Buy a house with a large mortgage, have children, or do something that’s deductible to reduce your tax bill.” The accountant’s words were true, and a shining example of a wealth transfer that’s not spoken of enough.

We hear all the time about how basic income taxes, government spending and inflation are redistributive in nature, but not mentioned enough is how both political parties use the tax code to redistribute wealth to favored constituents or individuals who live as Washington would like them to. Those who don’t play the game are essentially fleeced so that those who do can enjoy a lower tax bill. Full story here