What's the Cost

Conservatives are constantly referring to the costs of things like the Earned Income Tax Credit and bring up the fact that approximately 40% of tax filers do not pay federal income taxes. However, they fail to mention the loss of tax revenue from some of their favorite deductions. Altogether, these deductions represent almost one-half of the total deficit, $8.69 trillion dollars, over a ten year period and are as follows: Tax Free Health Insurance $2.00 trillion, Tax Deferred Retirement $1.60 trillion, Mortgage Interest Deduction $1.00 trillion, State & Local Tax Deduction $0.90 trillion, Charitable Contribution Deduction $0.63 trillion, Step Up In Basis $0.71 trillion, Capital Gains $0.51 trillion, Tax Exempt Bonds $0.37 trillion, Off Shore Deferral $0.43 trillion, Accelerated Depreciation $0.54 trillion, Total 10-year Tax expenditures $8.69 trillion dollars. What is also important to point out is the reality that the majority of these tax savings are not shared equally by all tax payers, but enjoyed by the top 10% of income earners. At the same time, the wealthy who enjoy these tax savings are decrying expenditures that go to the poor and lowest paid citizens. Talk about class warfare!