The Liberal Lexicon 2: Tax Relief
At every level, Democrats, even a few Republicans, speak proudly of tax cuts and tax relief they supported in some way. But if you look more closely, most of these initiatives are actually just spending programs.
Take a "targeted" tax cut where you can get a break on your Minnesota Income Tax if you child pays tuition to attend a Minnesota Community College. Contrast this with a spending program that allows the college to discount their tuition for qualified taxpayers. Now do the math, to assess the effect on the three checkbooks involved: the State's, the College's, and the Taxpayer's. The result is exactly the same either way. If you have to spend money in a particular way to get a tax break, this is the same as an incentive program. If you don't engage in that activity, you get nothing. Instead, you pay for those who do.
"Refundable" tax credits like the Earned Income Tax Credit are welfare. Anyone doubt this? Doing the math on a tax form means nothing.
Another ruse is "property tax relief" that goes not to you, but your city or your school district. If you live in Minneapolis, you'll never see a dime of it. And public school finance being so murky, you'll never truly know how much relief you got, if any. You might even lose money, like when one time programs launch permanent bureaucracies that actually become net tax increases over time.
True tax relief is you keeping your money, to spend or save as you wish. Accept no substitute!
Cross-posted and comments welcome at Speed Gibson.
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