06-17-2016, 05:43 PM
(06-17-2016, 05:04 PM)Benton Wrote: No matter where you put some of that stuff, a lot of it can't be afforded outside of higher earners. As I said, I dont mind deductions if they're available to all. As those examples and others only apply to a small group, they don't. Not in the same way as writing off mortgage interest, which applies whether you owe a dollar on your house or a million. There aren't many dollar yachts.
The yacht is a horrible example. For a decent number of people a modest "yacht" is their second home - it qualifies because it's a second home and not because it's a boat. For others, they legitimately use it as a business for tours, parties or fishing expeditions. The "business entertainment" is kind of BS, but no different than other personal expenses put on company books that many sole proprietors of all levels do.
The horse racing and luxury cars are pretty piddly for those people and are much more an industry/company subsidy than a handout to the rich. BY FAR the biggest difference in marginal tax rates is driven by capital gains. The rest is mostly just political talking points that don't really move the needle other than to enrage a voting base that doesn't know better.
Carried Interest (a type of income, not a deduction) is probably the biggest hole that dwarfs - combined - everything else like horses and cars you'd bring up, but eliminating it would "only" yield about $10-$20B a year.
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