We never raised any taxes. We're just saying close the loopholes and collect the taxes that are owed to the Treasury and the United States people. This was Senator Joe Manchin (D-WV) explaining away the 15% minimum tax on billion dollar companies included in the grossly misnamed Inflation Reduction Act.
The primary "loophole" Democrats wish to close is for simple business expenses. That is, if Exxon sells $10 billion worth of gasoline, Democrats believe they should pay taxes on $10 billion. Period. That they only made $100 million in profit on that gasoline after paying $9.9 billion in licenses, leases, fees, salaries, equipment, other taxes, etc - is of no mind to them whatsoever. They only see the big number and believe the little number is fraudulent - "taking advantage of a loophole". Now, let's say you in fact, "close that loophole" which I've just described - as in the Manchin 15% minimum tax which is included in the ironically named "Inflation Reduction Act". Exxon is still going to make their one percent profit to pass along to their shareholders - they're just going to tack on $1.5 billion to the price of the gas they sell - artificially inflating it for us all. This isn't rocket surgery.
“ A reduction in taxation for some is a relative increase in taxation for others, by the way, and tax "loopholes" are not a separate creature from taxation itself.
Are the solar power tax credits in the Manchin bill loopholes? Are the home energy rebates for low income families loopholes? Are the tax credits for buying “clean” vehicles loopholes?
Again, yes, yes, and yes. But Manchin and the other supporters of this bill won’t ever call them that.“
Certainly a business is permitted to define its taxable income by subtracting its expenses from its revenue. But the definition of an “expense” can be murky and the result is a complex tax code influenced by lobbyists seeking advantages for their respective industries.
Tax “loopholes” or “incentives” are a backhanded way of spending money. Whether the government lets you deduct mortgage interest or simply cuts you a check to help you buy your home the result is the same. Either way you are (thanks to the real estate lobby) receiving an advantage over someone who, for example, chooses to rent a home and use his savings for investment instead of a down payment.
Tax preferences that are eliminated in the name of fairness should be accompanied by a reduction in tax rates to maintain the same overall revenue. Whether or not the government needs more revenue ought to be a separate debate.
❤️ I trust you realize you have a very low tolerance for sophistry😁
You are as compelling in your arguments for Libertarianism as F.A. But no one is as compelling as Salma!😍
The primary "loophole" Democrats wish to close is for simple business expenses. That is, if Exxon sells $10 billion worth of gasoline, Democrats believe they should pay taxes on $10 billion. Period. That they only made $100 million in profit on that gasoline after paying $9.9 billion in licenses, leases, fees, salaries, equipment, other taxes, etc - is of no mind to them whatsoever. They only see the big number and believe the little number is fraudulent - "taking advantage of a loophole". Now, let's say you in fact, "close that loophole" which I've just described - as in the Manchin 15% minimum tax which is included in the ironically named "Inflation Reduction Act". Exxon is still going to make their one percent profit to pass along to their shareholders - they're just going to tack on $1.5 billion to the price of the gas they sell - artificially inflating it for us all. This isn't rocket surgery.
And the "loopholes" Democrats are constantly bitching about were created by Congress! If it weren't so pathetic it'd be funny. Great piece
“ A reduction in taxation for some is a relative increase in taxation for others, by the way, and tax "loopholes" are not a separate creature from taxation itself.
Are the solar power tax credits in the Manchin bill loopholes? Are the home energy rebates for low income families loopholes? Are the tax credits for buying “clean” vehicles loopholes?
Again, yes, yes, and yes. But Manchin and the other supporters of this bill won’t ever call them that.“
Certainly a business is permitted to define its taxable income by subtracting its expenses from its revenue. But the definition of an “expense” can be murky and the result is a complex tax code influenced by lobbyists seeking advantages for their respective industries.
Tax “loopholes” or “incentives” are a backhanded way of spending money. Whether the government lets you deduct mortgage interest or simply cuts you a check to help you buy your home the result is the same. Either way you are (thanks to the real estate lobby) receiving an advantage over someone who, for example, chooses to rent a home and use his savings for investment instead of a down payment.
Tax preferences that are eliminated in the name of fairness should be accompanied by a reduction in tax rates to maintain the same overall revenue. Whether or not the government needs more revenue ought to be a separate debate.