Advancing a Free Society

Tax Preferences and Idle Chatter

Saturday, May 7, 2011

"When oil companies are making huge profits and you're struggling at the pump, and we're scouring the federal budget for spending we can afford to do without, these tax giveaways aren't right." They aren't smart. And we need to end them. (Barack Obama, Weekly Radio Address)

Let me begin with some background information:

The United States Internal Revenue Code is 44,000 pages, 5.5 million words, and has 721 different forms. A nightmare of unmatched complexity, it conceals, in undecipherable language, tens of thousands of favors, preferences, and influence buying, bordering on corruption.

Many provisions favor specific individuals, organizations, or companies. They are hidden deep without any attempt to justify them (Example: breaks for upgrading a motor sport race track). Others are justified as promoting green energy, reducing unemployment, encouraging home ownership, supporting research and development, or any other social engineering goal that sounds good.

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