Pesky Tax Cuts expiring? What are they?
Just yesterday an impromptu discussion in taxation and representation occured over at Community College Dean’s blog. Apparently “anonymous‘s” comment was “uncalled for” when anonymous (in response to the question about including tax-payers in selecting a college’s Board of Trustees) suggested that taxpayer has less of a say than does the voter (and I would agree, these two concepts are not synonymous!)
Having just made made my estimated tax payment (late, yet again, I know…) was reading through the IRS 1040 ES tax pamphlet, and came across a list of list of expiring tax benefits. I have (using the power of the Jing Project!) excerpted from that document that list:
Why would I list this? Well, I find it quite interesting that, as part of the Democrats efforts to eliminate Bush’s “tax cuts for the rich” they are letting these evil tax cuts die. You know the ones.. That credit for encouraging energy efficiency? Oh, and that pesky credit for research (darn those tax-evading scientists!)1
Interestingly, despite his obvious leftist leanings, Dean Dad hasn’t commented on the expiration of the tax benefit called “Tuition and fees deduction.” He also hasn’t commented on the loss of the educator deduction from the AGI. I wonder why?
So my question for you, dear readers is this:Â Why were these tax cuts/benefits evil, and how do they only help the rich?
1 Interestingly, several of the podcasts I have listened to lately have applauded the Obama election, and talked about the expectation that the floodgates of funding will be swinging wide. Hmm… at the same time that we remove the tax credit for conducting research? Apparently (and I just surmise here) the only “good science” is that which is directly funded by the government. Ahh, yes, suckling…
I have no desire to get into the politics of this discussion, but will correct a few misconceptions. The information you post references tax credits scheduled to expire 12/31/07. We are currently near the end of tax year 2008. The tuition and fees deduction as well as the research credit deduction were extended through 12/31/09. The residential energy credit “lapsed” for a year, but has been reinstated for qualifying energy improvements placed in service during 2009.
Historically, as we have seen with the AMT, credits and other tax-related regs schedule to “expire” are often extended by Congress at the last minute and sometimes, not until early into the new tax year. I would not get too excited when certain tax credits are “scheduled” to expire. Of course, this could all change with the incoming administration….but once again, I will not touch the political aspects of these issues!