From the Tax Policy Center, reported in the WSJ:
Excluding employer-provided health insurance from workers’ incomes is the single biggest benefit in the tax code … one that reduced federal revenue by $160 billion last year.
By letting Americans subtract mortgage interest from their incomes, the government gave up nearly $79.2 billion in tax revenue last year.
Letting taxpayers deduct local property taxes on their federal income-tax return reduced federal revenue by $15.1 billion last year.
Ken’s Take Believe it or not – even though I benefit from all of those tax-savers – I’m a fan of eliminating them – and the deductions for charitable contributions — as long as the tax rates are reduced.
My logic: Why should an employee with company funded health insurance get a break over a self-employed person who has to pay for their health insurance (in after tax dollars)? Why should a home owner get benefits that a renter doesn’t ? Why shouldn’t a person donate to a charity because it’s a good thing to do, not because they get a tax deduction?
The Homa Files 
July 21, 2011 at 8:19 am |
Amen!
July 21, 2011 at 9:40 am |
Double Amen!
July 21, 2011 at 10:46 am |
How would you handle tax on health and benifits for government employees and religious organizations? Not only do most get subsidized health care but in the case of government there is often an untaxed allowance for housing and food. The housing allowance can then be used to pay a tax-deductable mortgage.