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US CAPITAL: Tax Breaks as Spending - Article Example
Author : zechariah13
Pages 2 (502 words)
Tax Breaks as Spending discusses the way the United States government utilizes the tax code to hide the fact they are spending money in the economy. For a typical family income and spending are clearly identified…
President Barack Obama is currently in a fiscal standoff with Republican Senators. The President and the Democratic Party want to reduce the deficit by raising taxes and reducing spending, while the Republicans are only agreeing to reducing spending. Both the Democrats and Republicans agree that spending occurs in different ways for the government. “Congress and presidents of both parties long ago discovered that giving people a tax break – a deduction, credit, exclusion, or loophole – often makes them just as happy as giving them a check” (Wessel, 2013).
The tax-break approach is been used by the government to hide the fact they are increasing their spending on the US economy. This strategy is referred to as backdoor spending through the tax code. Two of the major areas that are targeted by the tax code to reduce the burden on American families are child day care and education. Helping out people with children is a social responsible strategy that helps single parents become a part of the workforce. During 2012 the federal government spent nearly $5.2 billion in child-care subsidies. Child-care subsidies are a governmental help that targets low income families. Approximately 2.5 million children benefit from these types of subsidies. The tax code in the United States also offers help by giving parents tax breaks to pay for child care. ...