THE TRUTH ABOUT TAXES – AT 10:39 A.M. ET:  Taxes are a hot issue on both sides of the political aisle, and no subject generates more mythology than the issue of who gets what in the tax system.  President Obama is trying to convince Americans that corporations are stealing the country blind.  But, incredibly, the liberal Washington Post runs a piece today that, in effect, says, "No so fast, Barack."

As President Obama and congressional Republicans argue over how to rewrite the U.S. tax code, the debate has revolved around “loopholes” for corporate jets and ending “carve-outs” for well-heeled special interests. But if the goal is debt reduction, that’s not where the money is.

Broad tax breaks granted to millions of families at all income levels dwarf the corporate giveaways. Over the past two years, largely because of these popular benefits in the federal income tax code, the government has reached a rare milestone in tax collection — it has given away as much as it takes in.

The number of tax breaks has nearly doubled since the last major tax overhaul 25 years ago, with lawmakers adding new benefits for children, college tuition, retirement savings and investment. At the same time, some long-standing breaks have exploded in value, such as the deduction for mortgage interest and the tax-free treatment of health-insurance premiums paid by employers.

All told, federal taxpayers last year received $1.08 trillion in credits, deductions and other perks while paying $1.09 trillion in income taxes, according to government estimates.

Only about 8 percent of those benefits went to corporations. (The write-off for corporate jets equals about .03 percent of the total.) The bulk went to private households, primarily upper middle-class families that Obama has vowed to protect from new taxes.

COMMENT:  That doesn't mean there can't be improvements, but I wish Obama would stop scapegoating corporations.  There are good corporations and corporations that don't measure up.  There are tax benefits for corporations that make sense, and some that don't.  The issues of fairness in the tax system, and the level of taxation, require serious discussion and a rational examination of the nation's needs.  The demagogues, including the president, are not helpful. 

September 18, 2011