Two Problems with Every Tax Deduction Passed by Congress
2011/11/30 Leave a Comment
Congress passes tax deductions with the expectation of a certain result. Can anyone honestly say that Congress has gotten the desired results from all its tax deductions? Did the result happen?
Congress gives businesses billions of dollars in tax deductions and “hopes some loose change” will trickle down to the worker. Does it? Does Congress get its money’s worth?
The tax deduction “Cash in the Hand” solves this problem. If you give $1000 to a poor person for food, “Cash in the Hand” gives you a $1000 tax deduction, not a $5,000 tax deduction. If you hire a person and pay them $10,000 for health care, “Cash in the Hand” gives you a $10,000 tax deduction, not a $20,000 tax deduction. Notice that the desired results must be done first, then you get the tax deduction, but only for the amount spent.
“Cash in the Hand” is Results First, Payment Second, Dollar for Dollar.
You would not hire an auto mechanic to fix your car the way Congress hires companies to fix societies problems. Would you hire an auto mechanic by giving him thousands of dollars and then hoping that your car is fixed? Or would you require the car to be fixed before you paid the mechanic and you would only pay the mechanic a fair price for the work that was done?
Cash in the Hand: Results First, Payment Second, Dollar for Dollar