Taxes should be about raising revenue to pay for the functions of government. Because it has in recent years become a tool for social engineering, the code has been littered with an array of deductions intended to affect behavior at both the individual and firm level. Unless we allow firms to depreciate plants and equipment, the argument goes, they won’t make any further investments back into their enterprises, thereby resulting in possible job loss. And unless homeowners get mortgage interest deductions, the argument also goes, they simply will not buy houses. But in order to pay for either of these deductions, the effective tax rates are forced up.
Author of Restoring the Middle Class Through Wage Policy: Arguments for a Middle Class
Understanding Public Policy in the United.States.
The Minimum Wage: A Reference Handbook
Wage Policy, Income Distribution and Democratic Theory
The Case of the Minimum Wage: Competing Policy Models
Oren M. Levin-Waldman is faculty member in the School of Public Affairs and Administration at Rutgers University-Newark, and Socioeconomic Research Scholar at Global Institute for Sustainable Prosperity Research. Learn more at the professor’s Website: https://www.econlabor.com/. Direct email to firstname.lastname@example.org