Runaway Tax Breaks in Perspective

This morning, the House Revenue Committee began hearings on House Bill 2456, which is the first step in closing tax loopholes for big corporations and the wealthy in order to put more money into K-12 classrooms and critical services.

The centerpiece of the plan is capping income tax deductions for the wealthy: Households with income above $250,000 (and individuals at $125,000). This would only affect about the richest 2% of the state, and it would raise around $169 million.

For perspective on why this kind of reform is so desperately needed, check out this chart, which compares the astronomical growth in spending on tax breaks (29%) vs. spending on our K-12 schools.

school funding vs tax breaks (2013-15 update)Tax breaks have grown by $8 billion just in the last four years. Capping tax deductions for the wealthy is a good first step toward raining in these out-of-control loopholes.

 

4 Responses to “Runaway Tax Breaks in Perspective”

  1. William "Bill" James

    I believe in capiitalism because historically, (pre-Reagan) big business generously did its part by re-investing in our country, thus more jobs and spendable incomes for the middle class. Today, thousands of big biz companies with “headquarters” in offshore locations like Panama and others, pay absolutelly ZERO in federal takes because they are “”officially” no longer U.S. companies. They also receive cash incentives for helping build third world countries. It’s past time to bring the hammer down on these bandits, and if this bill will help do that —even a little– it has my vote. Thanx for bring this to my attention.

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