Goshen News, Goshen, IN

Community News Network

November 29, 2012

Why vague plans to limit tax breaks may soon die

(Continued)

Under this approach, if someone gave $1 to a charity, the government would also contribute, say, 15 cents more to that charity in the form of a matching tax credit. (It may be necessary for both constitutional and policy reasons to exclude religious organizations from this matching credit. Such organizations could, though, continue to benefit from a simple flat-rate tax credit that takes the form of a rebate, as with the existing structure.) The tax subsidy per dollar of charitable giving would no longer depend, as it does today, on the individual's marginal-tax bracket.

The bottom line? The legislative process will soon reveal the flaws in vague, simplistic strategies to limit tax deductions. If we are going to put in the effort to reform the tax code, we should at least try to do it right.

Peter Orszag is vice chairman of corporate and investment banking at Citigroup and a former director of the Office of Management and Budget in the Obama administration.

Text Only
Community News Network
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
AP Video
Arizona Prison Chief: Execution Wasn't Botched Calif. Police Investigate Peacock Shooting Death Raw: Protesters, Soldiers Clash in West Bank Police: Doctor Who Shot Gunman 'Saved Lives' 'Modern Family' Star on Gay Athletes Coming Out MN Twins Debut Beer Vending Machine DA: Pa. Doctor Fired Back at Hospital Gunman Raw: Iowa Police Dash Cam Shows Wild Chase Obama Seeks Limits on US Company Mergers Abroad Large Family to Share NJ Lottery Winnings U.S. Flights to Israel Resume After Ban Lifted Official: Air Algerie Flight 'probably Crashed' TSA Administrator on Politics and Flight Bans Raw: National Guard Helps Battle WA Wildfires Raw: Ukraine's Donetsk Residents Flee Senators Push to End Hamas Threat in Cease-Fire A Young Victim's Premonition, Hug Before MH17 Raw: Deadly Storm Hits Virginia Campground Death Penalty Expert: 'This is a Turning Point' Raw: MH17 Victim's Bodies Arrive in Netherlands
Poll

Last weekend (July 12) the Goshen Parks Department held its Kid’s Try-athlon to promote childhood fitness and this week (July 18) the new bicycle trail is open to the fairgrounds in Goshen, offering residents a healthy way to get to the annual agriculture exposition. Have you joined the local fitness movement?

Yes, I work at eating healthy and exercising
No, I am happy with my fitness level
Changing my diet and exercise frequency is a work in progress
     View Results