>>>I dont view the termination of a selective subsidy to be a tax increase.
Would you view the mortgage interest tax deduction in a similar way?
For me personally, no I wouldn’t view it the same way. But that’s the whole problem with our tax code; it’s really nothing but a fight by special interests for preferential treatment. Your tax cuts should be eliminated but I’ll fight if you want to cut mine. It’s the flip side of the same coin when you talk about the spending portion of public finance. Whether the subsidy exists as the government not taking money in the form of revenue or handing out money in the form of some kind of “entitlement” is only a difference of nuance, not of substance.
In the end, fiscal decisions, both public and private, are not made on the basis of economic efficiency but rather on political connection and clout. And we wind up with a crazy distorted economy that is chasing away jobs and stifling productive innovative activity.
We need a streamlined tax code for everyone, a revenue generating system that is uniform and predictable, and designed only to obtain as much revenue as necessary to fulfill the core functions of government. Arguing over this deduction and that credit is an argument over re-arrangement of deck chairs.