President Obama created a Kansas tornado at his recent news conference, when he commented about “rich people” receiving tax breaks for their corporate jets. Wichita Mayor Carl Brewer said he was “deeply concerned” by the President’s words. Congressman Mike Pompeo blasted Obama, saying he is “disconnected from reality” … and doesn’t understand that folks use jets as “tools” to grow businesses and create jobs … especially in the President’s mother’s home town, Wichita.
Our Kansas politicians are properly concerned about any government change that might help or hurt the manufacture of airplanes.
And yet, the President’s comments … and the powerful Kansas reaction … point up one of the problems we Americans face in trying to solve our economic woes. Our tax code is like a spider’s web … filled with exemptions designed to assist one industry or another, or even one specific business.
Many individuals count on exemptions for home mortgage interest and charitable contributions.
Trouble is, these exemptions are not fair to everyone, and they’re designed to influence our economic behavior. Eliminating any “breaks” will open a gigantic can of worms.
Our thought for today is from Bernard Berenson:
“Governments last as long as the under-taxed can defend themselves against the over-taxed.”