Eliminate Everybody's Loopholes Except Mine

Eliminate Everybody's Loopholes Except Mine

Until he talked about tax reform, Treasury Secretary Timothy Geithner's spirited defense of administration policy was making a lot of sense.

The scene was the venerable Senate Finance Committee hearing room the day after the release of President Obama's fiscal 2013 budget...

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As it is trying to promote tax reform, the Obama administration is defying the logic of real tax reform -- the economic logic that tax neutrality is best for growth and job creation except in extraordinary circumstances.

What administration incentives hinder true tax reform efforts? A conversion of the already complicated section 199 manufacturing deduction into a two-tiered incentive. A temporary incremental wage credit for small business. A tax credit for investment in communities that have experienced a job loss event. A tax credit for moving expenses when companies move jobs to the United States. New tax credits for alternative energy to replace the existing ineffective and outdated ones.

This is big government through tax policy. The complexity of these new tax breaks is extraordinary even by the standards of our tax code...

View TaxAnalysts'® Martin Sullivan's opinion in its entirety on TAX.com.

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