Now, as Washington is considering multiple cuts for important community supports they’ve “forgotten” to check back on the tax break side. Something unknown to most Americans is that when lawmakers start looking where to slash program budgets they do not generally review all of the tax breaks. No doubt, a difficult task. In fact, tax breaks continue without lawmakers even being aware of their costs when voting on these budgets. Imagine ignoring $500 in bank account and taking out a high interest loan instead.
Here are a few examples of costs on both sides of the ledger:
- families who purchase a vacation home in 2011 will reap $800 million by avoiding taxes through mortgage interest deduction, while the House Budget includes a $730 million cut for housing programs for the elderly and disabled
- oil companies get more than $2 billion in tax write-offs for drilling expenses, yet Congress is considering cutting the Low Income Home Energy Assistance Program (HEAP) that provides just $2.5 billion nationwide to families who really need it to survive.