Sunday, March 4, 2012

In Context: Tax Subsidy

Do you want a concrete example of how the government is promoting over consumption? Consumers with home equity loans can deduct the interest on up $100,000 of that loan from their taxable income. This means that the U.S. government, which is currently running massive deficits, is actively subsidizing the purchase of big screen TVs, boats, vacations, and whatever else Americans buy with home equity loans. This is ridiculous.