James Wittenbach
James Wittenbach
asked broke class code credits currently economic excellent explain five four group internal political provide reason revenue students tax teams
The first day of class this fall, I broke the students into teams of five and asked them to provide me with four or five tax credits that are currently not in the Internal Revenue Code but would be excellent additions. I ask each group to not only come up with new tax credits, but explain the social, economic or political reason for why the tax credit should be enacted by Congress.
although benefit bracket dan example federal government hurricane katrina lose marginal percent revenue rita save taxes taxpayer victims
For example, a taxpayer in the 25 percent marginal tax bracket would save $250 in taxes by making a $1,000 contribution. However, as Dan explained, although the federal government will lose $250 in tax revenue there is $1,000 going to benefit hurricane victims that the government doesn't have to spend. Put differently - the taxpayer, the federal government and the victims of hurricanes Katrina and Rita all win.