Corruption in Politics

The tax deduction “Cash in the Hand” reduces corruption in politics.

The cycle of corruption in politics looks like this:

• Unions/Corporations/Special Interests donate to and work to elect politicians.
• Politicians pass legislation that benefits those Unions/Corporations/Special Interests and hinders their competition.  For example they pass pay raises for union members, construction projects for corporations or funding for special interests like green energy.
• Unions/Corporations/Special Interests make more money because of the legislation and use that money to re-elect the same politicians.
• Lather, Rinse, Repeat.

For an example of how “Cash in the Hand” breaks this cycle of corruption, lets look at teachers unions.  When politicians pass a pay raise for teachers the taxes rise to pay for this and the tax deduction for educating your child increases accordingly.  “Cash in the Hand” results in all the money going to the parents.  The parents can decide how much to keep and how much to give to the school of their choice.  If they think one school charges too much for the services provided, then they can take their children and their money to another school.

The cycle of corruption with “Cash in the Hand” looks like this:

• Unions donate to, and work to elect, politicians.
• Politicians pass laws to give a pay raise for teachers and raise taxes.
• The American workers’ tax deduction will increase, corresponding to the tax increase, so they have more money to educate their children.
• The money may or may not be given to the teachers, by the parrents.
• Cycle broken.

The same solution applies to corporations and special interests.

Conclusion

When the individual has the final say over government spending, corruption is eliminated from politics.  You can not corrupt a person with his own money, only with someone else’s.  The tax deduction “Cash in the Hand” gives the individual this final say and the individual keeps his own money.