 | Medicare for the wealthy– private health insurance is
tax exempt |
| housing projects for low income benefits construction
industry, banks |
| charity tax deductions |
| deficit financed treasury bonds |
| business deductions including settlements, e.g. Exxon oil
spill, or ad campaign expenses, e.g. Coke |
| tax expenditures (credits - % of income not taxed;
deductions – expenses deducted from taxable income; exclusions – some types of
income not taxable; special tax rates; tax sheltering – deferring tax payments over
long-term) also known as tax exemptions or tax loopholes: government offers tax breaks
thus spending indirectly which is what it normally does when it spends dollars directly,
amounts to 400 B by corporations and individuals |
| home mortgage tax deduction of interest for homeowners,
usually benefits middle income and upper income, 50 B |
| subsidies to energy industry, mainly oil and gas
industries, for depletion and alternative fuel production 85B |
| farm aid, corporations and landowners - subsidies to
agricultural industry, e.g. price support programs guaranteeing farmers a pre-determined
price 10B, or for bad weather/natural disasters, 80% of subsidies go to farmers with net
worth of > ½ million |
| contracts to defense industry which is a long term subsidy |
| construction of super highways instead of public
transportation |
| trade restrictions i.e. import tariffs, idea of a
"free market", restricting competition, e.g. defense industries |
| exclusion of interest on certain public purpose state and
local bonds, estimated 90% of bonds are owned by wealthy 12B |
| depreciation of machinery and equipment 19 B |
| tax credit for corporations doing business in United States
possessions 2 B |
| special tax treatment of capital gains 6 B |
| bailout of corporations, e.g. savings and loan 180 B or
Chrysler 2.5 B |
| loan guarantees enabling businesses to compete or federally
backed loans at favorable interest rates for home mortgages and farm expansion |
| externalities: social and environmental problems not even
factored into costs |
