Meridian Star

New Today

November 29, 2012

Why vague plans to limit tax breaks may soon die

(Continued)

Under this approach, if someone gave $1 to a charity, the government would also contribute, say, 15 cents more to that charity in the form of a matching tax credit. (It may be necessary for both constitutional and policy reasons to exclude religious organizations from this matching credit. Such organizations could, though, continue to benefit from a simple flat-rate tax credit that takes the form of a rebate, as with the existing structure.) The tax subsidy per dollar of charitable giving would no longer depend, as it does today, on the individual's marginal-tax bracket.

The bottom line? The legislative process will soon reveal the flaws in vague, simplistic strategies to limit tax deductions. If we are going to put in the effort to reform the tax code, we should at least try to do it right.

Peter Orszag is vice chairman of corporate and investment banking at Citigroup and a former director of the Office of Management and Budget in the Obama administration.

Text Only
New Today
Biz Marquee
New Today
Poll

Do you think people should be allowed to carry firearms into government buildings?

Yes
No
     View Results
Facebook
Facebook
Twitter Updates
Follow us on twitter
AP Video
Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue Raw: Corruption Trial Begins for Former Va Gov. The Carbon Trap: US Exports Global Warming UN Security Council Calls for Gaza Cease-fire Traditional African Dishes Teach Healthy Eating 13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide