Variables to consider when studying tax policy

There are many variables to consider when seriously studying tax policy, and proposed tax policy, including the definition of “wealth” and “wealthy” and the situations where annual income is confused with wealth. Many of the provisions of the tax code/regs/rulings/case law provide tools that provide monetary incentives to individuals to allow them to more easily “build wealth,” starting with the Mortgage Interest Deduction.

Purpose of the tax code

The purpose of the tax code is often not about revenue, but about achieving some specific result…like facilitating home ownership, and the building of adequate housing, etc. When those goals are no longer reached (if they ever were reached), it is time to change the strategy, but do so in the least disruptive way possible. Efforts are underway. The best thing a business person can do is stay informed, and advocate for what they believe is in their best interest, their client’s best interest, societies best interest…by contributing what they can to the effort…time, money, or both.

Recommended reading:

The New Grand Strategy: Restoring America’s Prosperity, Security, and Sustainability in the 21st Century

“The New Grand Strategy tells the story of a plan, born within the Pentagon, to recapture America’s greatness at home and abroad by elevating sustainability as our new strategic imperative. It aligns our enduring national interests of prosperity and security with a new framework that addresses pressing economic, social, and environmental issues at home, tapping into a trillion-dollar market demand for walkable communities, regenerative agriculture and resource productivity. It is an inspiring vision of what’s possible when Americans hold a collective view of the future and come together to bring it to reality.”