Alex Pareene Quotes
Tax expenditures for middle- and working-class Americans - like the earned income tax credit - aren't thought of as loopholes; they're just thought of as benefits.
Pareene, Alex. "The Myth of the Tax Loophole." Salon, 15 Apr. 2013.
He was referring to many of the tax earmarks and other tax legislation that in effect give funds to specific organizations or kinds of organizations or for those who engage in certain activities or sometimes just to favorite organziations. A tax credit or deduction is from a balanced budgetary perspective is no different from a subsidy.
[If a business takes other investors in to finance its growth or expansion, there are no tax consequences with the equity investment. However, if the same business borrows money from a bank, the business can deduct the interest cost of the debt from their federal and usually state taxes. If an individual buys a house and takes a large mortgage, the owner can deduct the interest from his taxes. However, if she instead does the more prudent and safe thing and puts more cash equity and takes a smaller mortgage, she only gets a small tax deduction.]
Alex Pareene is an American writer and editor. He was the editor of the online news magazine Gawker.