Tax Breaks are Just Another Word for Welfare

Because government programs like SNAP and Medicaid are paid for by the government, the government qualifies and monitors the people. who receive these benefits in order to ensure they aren’t buying liquor and cigarettes. There are legitimate arguments on whether this type of costly monitoring is necessary, however, I am willing to go along with them because if some people, in order to maintain programs that help the poor, need this kind of information in order to have them, I am all in. Qualify and monitor. These are the type of compromises that make governing in a politically diverse country possible.

What is annoying is the same oversight is not given to people who receive tax breaks. They just get the money and can do whatever they want with it including buying liquor and cigarettes. Now the notion here is that these good people are going to spend the money they received in tax breaks in investing money in their businesses thus creating more jobs however they are under no obligation to prove this. They could be spending the money on call centers located overseas and spa vacations for all we know. But no one asks them to show how they are spending these breaks on creating jobs here in America.

Here in lies the problem I have with tax breaks. They are unmonitored and given without nary a thought on how these windfalls are actually spent. So what, you might ask. Even if the jobs are created for call centers located in India and European vacations — this money eventually gets put back into the economy for the good of all. Right?

Well, yes but then very same thing can be said for giving money to the poor. Buying liquor and cigarettes at the local convenience store juices the American economy too. In fact, giving money to the poor is more likely to juice the American economy because the poor stay locally while the rich might wander off to Tahiti or Bali to spend their money.

Some people would argue that tax breaks are allowing the rich to keep their money and they should do anything they want with it. I would argue that it isn’t their money. The American people have a tax rate, whether you like that tax rate or not — it is the law. The tax obligation is the amount owed before tax breaks are calculated. The tax breaks then become government benefits — like Medicaid or SNAP.

If government benefits for the poor need to rigorously monitored then the same idea applies to tax breaks for the rich. I would like to see more tangible evidence that the rich are using their money wisely.

Leave a comment