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Since tax policy can create incentives for certain behaviors that are deemed to be in the public interest, should African America be promoting some strategic tax benefits/policy/deductions that could help our community? For example:

  • Wouldn't a tax deduction for all education costs for families earning less than, say, $100K be a great way to help working and middle class families better afford to educate their children? (Shouldn't student loans be tax deductible?)

  • If it is better that the family unit stay intact, wouldn't an incentive like doubling or even tripling the child dependent deduction for families where both parents are present be a good thing?

  • Shouldn't child care - perhaps for families earning under $50K, or for single mothers, be tax deductible to better support working families efforts to make ends meet?

  • Why on Earth aren't child support payments tax deductible? Alimony payments are. Don't we want to encourage the support of children?

  • Would something like affirmative action be received more as a "carrot" as opposed to as a "stick" if tax benefits were given for satisfactory hiring/retention of a diverse workforce?

  • Since there are 45 million people without healthcare in America, shouldn't 100% of non-insurance healthcare costs be tax deductible?

  • We want to encourage people to stay in school, right? Why not offer tax breaks for high school, technical school, college etc. folks for a limited time after graduation? For example, after H.S. graduation you get 2% points off your over-all tax rate - maybe for three years. Higher rates for college etc.

    Thoughts? What other tax deductions should there be?
  • © MBM

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    quote:
    Originally posted by MBM:

    Since tax policy can create incentives for certain behaviors that are deemed to be in the public interest, should African America be promoting some strategic tax benefits/policy/deductions that could help our community?



    These are tax policies that would seem to benefit all families, MBM, and many other people besides. The benefit of each of these provision to middle class and poorer families is so patently obvious that no comment is needed other than a unanimous "yes".

    But this government, "of the people, by the people, and for the people" betrayed that Declaration long ago. It's present form is not even close, not even for the common class of whites who still believe these idealistic pronouncements were written for them. The excretion from this governments thinly veiled subservience to special interest groups is so widespread that you have to watch closely to keep from stepping in it.

    And the present administration doesn't even attempt to hide it's malpractice. It openly awards contracts and privileges to Halliburton, Bechtel, Parsons, Ronco and to all its favorite lobbyists. Its distain for world opinion is matched by its distain for American public opinion.

    Which brings us back to the policies you have listed, provisions that are wise and would be widely supported by Black Americans and probably by Americans as a whole.

    But government "for the people" is a thing of the past, so who is left to give a damn?

    And taxes are historically paid by the middle class so who will make-up the lost revenue the enactment of these policies would bring about? Not the wealthy, not the special interest groups with their layers of lobbyists, and not the poor despite the comments of Barbara Bush.

    These jackals know a cash-cow when they see one and you've identified some of their prime stock. They're not about to let you or anyone else cut one from the herd.
    quote:
    Originally posted by MBM:
    Since tax policy can create incentives for certain behaviors that are deemed to be in the public interest, should African America be promoting some strategic tax benefits/policy/deductions that could help our community? For example:

  • Wouldn't a tax deduction for all education costs for families earning less than, say, $100K be a great way to help working and middle class families better afford to educate their children? (Shouldn't student loans be tax deductible?)

    Uninformed Estimated Cost (UEC): $5MMM

  • If it is better that the family unit stay intact, wouldn't an incentive like doubling or even tripling the child dependent deduction for families where both parents are present be a good thing?

    UEC: $5MMM

  • Shouldn't child care - perhaps for families earning under $50K, or for single mothers, be tax deductible to better support working families efforts to make ends meet?

    UEC: $5MMM

  • Why on Earth aren't child support payments tax deductible? Alimony payments are. Don't we want to encourage the support of children?

    $5MMM

  • Would something like affirmative action be received more as a "carrot" as opposed to as a "stick" if tax benefits were given for satisfactory hiring/retention of a diverse workforce?

    UEC: $50MMM

  • Since there are 45 million people without healthcare in America, shouldn't 100% of non-insurance healthcare costs be tax deductible?

    No. Only the excess over 3% of gross income. UEC: $5MMM

  • We want to encourage people to stay in school, right? Why not offer tax breaks for high school, technical school, college etc. folks for a limited time after graduation? For example, after H.S. graduation you get 2% points off your over-all tax rate - maybe for three years. Higher rates for college etc.

    UEC: $5MMM

    Thoughts? What other tax deductions should there be?


  • Total Uninformed Estimated Cost: $80 billion.

    Annually.

    The one-time cost, capital investment, for New Orleans (alone) is $200 billion. It is proper to call this an investment. It is.

    The UEC would equally be an investment.

    I would additionally invite anyone (financial types) who is familiar with methods to make this estimate more realistic to do so.

    MBM, I really like this.

    I was thinking of the daunting task of developing an across-the-board platform necessary for a national candidate to public office.

    Man, you nailed it.

    Thank you, Thank you, Thank you.

    This puppy gets 'plugged in' as a primary suggestion for the platform of the African American National Committee.

    PEACE

    Jim Chester
    quote:
    Originally posted by MBM:
    Since tax policy can create incentives for certain behaviors that are deemed to be in the public interest, should African America be promoting some strategic tax benefits/policy/deductions that could help our community? For example:

  • Wouldn't a tax deduction for all education costs for families earning less than, say, $100K be a great way to help working and middle class families better afford to educate their children? (Shouldn't student loans be tax deductible?)

    The Education Credit can be as much as $1,500.00 per qualified student. That credit - dollar for dollar - reduces tax liability. The Hope Credit portion covers the first two years of higher education and the Lifetime Learning Credit covers any and all education for the rest of the taxpayer's life. There are also education credits for business related higher education expenses.

    Student loan interest is reflected as a direct adjustment which dollar for dollar reduces Adjusted Gross Income. There are income limitations, however, taxpayers earning under $100,000 certainly do qualify.

    In some states, Ohio being one, there is an additional deduction if the student attends school in Ohio.

  • If it is better that the family unit stay intact, wouldn't an incentive like doubling or even tripling the child dependent deduction for families where both parents are present be a good thing?

    The Child Tax Credit has more than doubled over the last 8 years, but it is not related to the marital status of the taxpayer. Separation of church and state, remember? It would not be fair to "reward" people for honoring their marriage contract and "punish" others for being single parents. The single parents are in far greater need of tax breaks than are married couples for obvious reasons - one of them being that most custodial parents are females. Females traditionally earn $0.76 on the dollar of their male counterparts.

  • Shouldn't child care - perhaps for families earning under $50K, or for single mothers, be tax deductible to better support working families efforts to make ends meet?

    The Child and Dependent Care Credit has been around for years. For one child, the credit is calculated on the first $3,000.00 of out of pocket expenses, and for two or more children it is calculated on the first $6,000.00. The credit on the high end is 35% of expenses and on the low end is 20%. Inadequate? Yep. Better than nothing? Yep.

  • Why on Earth aren't child support payments tax deductible? Alimony payments are. Don't we want to encourage the support of children?

    The premise is that it is your obligation to support your children and that you should not receive a break from the government for so doing. Support of an adult is a different issue. Alimony is taxable income to the recipient thereof and child support is not technically "income". It is responsibility.

  • Would something like affirmative action be received more as a "carrot" as opposed to as a "stick" if tax benefits were given for satisfactory hiring/retention of a diverse workforce?

    There are business credits in place for businesses established in what are called "development" or "empowerment zones" and there are also credits for hiring through the "Welfare to Work" program, the disabled, and others. Many other business credits and incentives are in place as well.

  • Since there are 45 million people without healthcare in America, shouldn't 100% of non-insurance healthcare costs be tax deductible?

    Yes. The trend is shifting very slowly as this is a hot button for IRS. 100% of health care premiums are now deductible for self employed taxpayers - up from 60% a few years ago. It is taking a long time to catch up for employees as there was a time when out of pocket medical expenses were low and almost all American workers had access to health care at reduced premiums through their employers. Not true anymore, but the powers that be do not wish to adequately address this issue.

  • We want to encourage people to stay in school, right? Why not offer tax breaks for high school, technical school, college etc. folks for a limited time after graduation? For example, after H.S. graduation you get 2% points off your over-all tax rate - maybe for three years. Higher rates for college etc.

    As the tax rate is directly related to earned income, most people pay far lower percentages in the years right after high school or college as their income is lowest at that point.

    Thoughts? What other tax deductions should there be?


  • I ponder our taxation system and the unfairness thereof on a regular basis. I watch with eager anticipation each time a new group of "experts" get together to discuss tax reform. The system is so complex as it stands that no one person can say that they truly understand it and changing it is a phenomenal undertaking. One thing that I do know, however, is that far too few taxpayers are aware of the deductions for which they may already qualify and that may have been overlooked for years for whatever reason. That is why it is extremely important to ask your Accountant questions every year to see how the everchanging tax laws have impacted your specific situation and to secure the services of a qualified Accountant who will conduct a thorough and indepth interview each year to ensure that your tax return is complete. The IRS allows a three year "window" in which taxpayers may amend their returns and include deductions that were not reflected on their tax returns.

    **punching out now! Smile
    And taxes are historically paid by the middle class so who will make-up the lost revenue the enactment of these policies would bring about? Not the wealthy, not the special interest groups with their layers of lobbyists, and not the poor despite the comments of Barbara Bush.--- Pace Tua

    I submit that the 'payback' will come from those who initially benefitted. Like all (good)investment the return comes from the recipient.

    Those who live better, understand better, particiate better, and produce not only better, but more.

    They will be a 'rising tide' that lifts all bosts.


    PEACE

    Jim Chester
    It is noteworthy that the President's budget proposal is stalling in Congress. Republican members are balking at the depth and bresdth of the cuts.

    Those famous tax cuts, and refunds, are left standing while Bush wants to cut food stamps, et al.

    The MBM Proposal, my name, is right on point.

    I am of the school of reviewing first the solution that can work rather than the reasons it cannot.

    The bad behavior/performance of those in power are not reasons the suggested solutions cannot work.

    PEACE

    Jim Chester
    Sandye:

    I really appreciate your comments on the tax-based remedies proposed by MBM. I have made it an attachment to the plan to assure further due dilience as the proposal goes forward.

    I don't think the platform for the national committee needs to address every problem of our nation, but I do think that platform needs to address key issues for African America in its initial presentation.

    I'm nibbling at it.

    Thanks for your input.

    PEACE

    Jim Chester

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