Simpson and Bowes say there are $13 trillion dollars in tax loopholes.

[kentuck]

They called them tax "expenditures".

If that is the case, is the best they can do is close it on only $650 billion over ten years?

Go back to the drawing board, Boys!

[OceanEcosystem]

1. $13 trillion over how many years?

I'm trying to understand.

[kentuck]

3. I understood it as $13 trillion dollars per year.

Even if over 10 years, they have recommended a pittance.

[OceanEcosystem]

4. That doesn't make sense. Isn't the United States' GDP something like $15 trillion a year?

If the US government currently gets, say, $2 trillion in tax revenue every year, and then $13 trillion out of $15 trillion of GDP activity escapes taxation due to loopholes, then wouldn't that be saying that the US government collects $2 trillion in taxes off of $2 trillion in economic activity? That would be a tax of around 100%.


(If we're discussing how tax loopholes allow things to go untaxed).

[kentuck]

6. You are correct. It is over a ten-year period.

http://news.yahoo.com/bipartisan-commission-proposes-2-4-trillion-deficit-reduction-143658525--business.html

<snip>
"We're going to have to push the White House on healthcare, we're going to have to push the Republicans on revenue," Bowles said on CNBC.

"Over the next 10 years, there's probably $13 trillion worth of tax expenditures in the tax code ... and we're talking about using about $500 billion of that to reduce deficit and the rest they can use if they want to reduce rates," Bowles said. "I think that's a pretty fair trade."

[OceanEcosystem]

7. Oh, ok, thanks. n/t.

[kentuck]

8. But why should there be a trade-off to get rid of loopholes??

Why not just close them? Loopholes do not sound aboveboard.

[Lint Head]

2. Buttons and Bows need to retire. Get the hell out of government. Old farts have messed up enough.

And I'm an old fart. I like what I hear from young liberals.

[madokie]

5. What you said

[kentuck]

9. Close a few loopholes, minimal tax on stock transactions, and raise the payroll deduction for SS....

and we could balance the budget without any cuts to programs for people.

[Johonny]

10. pretty much

[Ganja Ninja]

11. How about just go back to the old folks home boys and let ...

the people we elect and pay do their jobs and answer for their decisions.