Saturday, January 22, 2011

Tax Break = Government Investment?

What, exactly, did the government "invest" in this deal?

"...Obama noted that GE is spending millions of dollars on advanced equipment for its Schenectady plant, taking advantage of a new tax break.

The president wants the government to keep making similar investments in long-term growth, even as he looks for ways to cut spending elsewhere in the federal budget."

By this same logic, the government is investing in my house (mortgage interest tax break), my church (charitable deduction tax break), the Bastiat Society (a 501(c)3 eligible for the charitable deduction tax break), and my children (dependent tax break).

Imagine investing in all that, and using money that's already mine! Even Goldman Sachs can't do that.

By the way, what is the opposite of such government "investment"? "Dis-investment?" Is the government dis-investing in high-wage earners and capital gains?

Bottom line: such talk obscures the fact that government is playing a game with other people's money.

The Charge To GE's CEO: Amp Up The U.S. Economy : NPR

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