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InsiderOnline Blog: December 2012

The Reason Some People Don’t Pay Their “Fair Share,” Isn’t Low Tax Rates

Rather, it’s because of all the handouts written into the tax code, observes Victor Davis Hanson:

Is Michael Moore (net worth: approximately $50 million) a one-tenth-of-one-percenter? If so, why do mansion-living-grandee movie directors like Moore and [Oliver] Stone need state subsidies and tax breaks to produce their films, when most states are nearly as insolvent as the federal government? […]

If the country is going to turn redistributionist, then we might as well do so whole-hog—given that eight of the wealthiest ten counties in America voted for Obama. Why not limit mortgage-interest deductions to just one loan under $100,000—while ending tax breaks altogether for second and third vacation houses?

Under the present system, the beleaguered 99 percent are subsidizing the abodes of Hollywood and Silicon Valley “millionaires and billionaires”—many of whom themselves have been railing against the 1 percent. Should the government provide tens of thousands of dollars in tax breaks for a blue-state 1-percenter to live in tony Palo Alto or Newport Beach when there are plenty of fine homes far cheaper and sitting empty not far away in Stockton and Bakersfield?

Blue states usually have far higher state income taxes that are used as deductions to reduce what is owed on federal income tax. Why should working folks in Nevada or Texas have to pay their fair share, while Wall Streeters get huge federal write-offs from their New York or Connecticut state income taxes? [National Review Online, December 13]

Posted on 12/13/12 06:16 PM by Alex Adrianson

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