Question

Taxes are the way our government generates income. Although the richest Io/o of the people in our country pay 39% of the taxes and the bottom 50% combined pay only 2.9% combined, everyone wants things from the government. They want roads and bridges and schools and an army and welfare and Medicaid and concerts and ]..... To provide these things our government has to raise money and cut expenses. Which of the following laws help raise money? Which help cut expenses?

1)Deduction for contribution to the church

2) American Opportunity Credit for attending San Jacinto College

3) Deduction for gift to the American Red Cross

4) Child credit

5) Deduction for mortgage interest

6) Deduction for home equity loan

7) Deduction for savings bond interest used for higher education (2 things)

8) Deduction for health savings account

9) Deduction for student loan interest

10) Adoption credit

11) Earned Income credit

12) IRA deduction

Answer 1

-The following laws help to cut expenses:

• Deduction for contribution to the church: In this way, people will contribute money to the churches and the Government would not need to contribute money out of its own treasury in order to contribute to the churches.

• Deduction for gift to the American Red Cross: With the government offering this exemption, people will contribute money to the American Red Cross and the Government would not need to contribute money out of its own treasury in order to contribute to the said organisation.

• Adoption credit: With the government offering this exemption, people will be encouraged to adopt and the Government would not need to contribute money out of its own treasury in order to build and maintain orphanages.

• Deduction for mortgage interest & Deduction for home equity loan: With the government offering this exemption, people will be encouraged to build their own houses and the Government would not need to contribute money out of its own treasury in order to build and maintain help homes.

• Deduction for health savings account: With the government offering this exemption, people will be encouraged to have their own health savings and the burden on Government to build and maintain help hospitals would significantly reduce.

• Deduction for savings bond interest used for higher education & Deduction for student loan interest: With the government offering this exemption, people will be encouraged to invest their own funds in education as well as save for higher education and the burden on Government to educate the nation as well as build and maintain government educational institutions would reduce .

  -The following laws help raise money:

• American Opportunity Credit for attending San Jacinto College

• Child credit
• Earned Income credit
• IRA deduction

Thus the above-mentioned acts, help the government in raising money that can be used to build roads, bridges, schools, an army, Medicaid and other social welfare infrastructure.