West Des Moines, IA (PRWEB) December 01, 2012
A new essay has just been released at http://www.rebootingamericandream.com discussing the nature of "tax loopholes". The "fiscal cliff" has been in the news and there is a lot of hand wringing about whether anything will be done before the end of the year when we go off "the cliff". The "fiscal cliff" is composed of tax cuts that will expire and automatic government spending reductions that were put in place as a condition to raising the "debt ceiling" a couple of years ago.
The idea was that it was okay to go further into debt at the time, but that we would start to focus on reducing the deficit in a couple of years when the economy was stronger. Now that the couple of years have passed, we are being told that the economy is still not strong enough and any kind of deficit reduction would send the economy into recession again.
Revisiting the nature of "tax loopholes" and tax cuts should give a clearer understanding to the "fiscal cliff" and what should be done to prevent from going over it, or whether anything needs to be done at all.
This essay was written by Ray Wu, author of Anti Social: Rebooting Capitalism and the American Dream, a book that examines the role of government in the economy in further detail.