Saturday, July 4, 2009

Broken National Priorities

The tax code is quite revealing about the politics of a country.

Take these case studies:

Case 1: I want the best education for my child. I am willing to make sacrifices and pay for it. However, there are no tax incentives to encourage this behavior. It is left to my own initiative to spend the extra dollars so that my child, and by extension, the next generation, is better prepared.

Case 2: I create a lifestyle business. I decide that that lifestyle business needs a Porsche as a company car. I lease the car and I can write off the associated expenses against my income. Here, there is a clear tax benefit that encourages consumption for today and does nothing to encourage investment for building a stronger tomorrow.

In other words, the government says that ostentatious consumption is good, but education is not. This is a clear example of misplaced national priorities, priorities that encourage individuals to party it up today with no regard for building a stronger nation for the future.

America - we are in trouble.

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