TAXATION YOU CAN BELIEVE IN

Last night I provided a few comments on Obama's massive budget increase.  More and more details are coming to light.  One of the ways Obama plans to pay for the increase is by increasing taxes and eliminating deductions.  One of the increases proposes to eliminate the mortgage deduction.  Another eliminates charitable contribution deductions.  

Remember the campaign promise not to raise taxes on those making less than $250,000 per year?  Well, this budget breaks that promise by reducing the amount of a mortgage deduction if you make over $208,000 per year.  Now that's change lies you can believe in!

Taxes not only raise revenue for the government, but can support governement policies and provide incentives for spending in certain areas.  Typically in stressed economic times tax policy encourages businesses to spend by providing credits or accelerated depreciation, etc.  In times of deep economic stress, we rely upon charitable institutions - including colleges and universities, aid and alms organizations, health care clinics, and so forth - to fill a need that the government can't.  These institutions rely upon charitable giving.  We already are among one of the lowest societies in per capita in alms giving.  Eliminating the tax deduction for charities at a time when unemployment is skyrocketing and these organizations are most needed is unconscionable.

The Wall Street Journal has an insteresting summary of these tax increases here.