Where your taxes go

shakedown-1340048_640Tomorrow taxes are due.  So it’s fitting to contemplate where your tax money goes.

To make it easier to comprehend, the non-partisan Committee for a Responsible Federal Budget looked at a representative $100 paid in taxes.  Of that, 8 cents goes to national parks, $15 goes for Medicare, $21 goes for defense, $50 goes for Social Security and health care programs like Medicare and Medicaid, etc., etc.

One observer said that the data supports the view that the United States is “a giant insurance company with an army.”  See details after the jump.

 

 
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Trump’s next try:  tax cuts

27046344132_0645e40fff_zHis immigration order was knocked down by the courts.  His healthcare plan was vetoed by Congress.  Now President Trump is gearing up for another initiative:  cutting taxes. and revising the tax code.

The president says that he should have started with tax reform.  That cause should be far more popular than those previous issues, and a victory here could give him momentum for his other priorities.

And yet, though most Republicans have never seen a tax cut they don’t like, this too will likely require a fight.  A number of Republicans in Congress are “deficit hawks.”  In light of Trump’s desire to spend lots of money on the military and on rebuilding the nation’s infrastructure, some Republicans are worried about cutting revenue at the same time.  Democrats, of course, will oppose any cuts in taxes as favoring the rich.

Prediction:  Trump will win this one. [Read more…]

How to go after guns despite the Second Amendment

The Second Amendment in the Bill of Rights protects the right of Americans to own firearms.  But liberals have come up with a way to restrict gun ownership anyway:  the time-honored power of the federal government to impose taxes on things it disapproves of.

A U.S. territory is adding a $1,000 tax for every firearm.  Chicago and Seattle are trying this on a much smaller scale.  This tactic was first proposed in 1993 by Hillary Clinton.  [Read more…]

Why pastors’ housing allowance is tax-exempt

As we reported, an appeals court upheld the practice of pastors not having to pay taxes on their housing allowance.  But, you might ask, why is that?  Joe Carter explains the history of that provision, putting it into the context of the laws exempting religious property from taxation that go back through English Common Law  into ancient times. [Read more…]

Pastors’ housing allowance upheld

Pastors have traditionally been allowed to take a large percentage of their salary as a tax-free housing allowance.  A lower court last year ruled that the benefit is unconstitutional.  But now an appeals court has overturned that decision, meaning that the housing allowance is still on. [Read more…]

Why corporations move

We blogged about “inversions,” when a corporation moves its official headquarters to another country.  George Will offers an explanation from the corporation’s point of view, going on to criticize liberals for waxing indignant over the consequences of policies they themselves promoted. [Read more…]