Hoo boy ...
In America, we are vehemently anti-socialist, so when our politicians and the
lobbyists who own them want to subsidize
(aka 'socialize') a particular constituency they will often give them a special
tax deduction--a 'tax break'--in order
to reward them for giving support ($$$) to and voting for the politicians, who
will reward them again, and so on. Both
major political parties--Democratic and Republican--do this while claiming it's
for the 'good of the country' in some
way or another.
A 'tax deduction' effectively reduces net income, and since our tax system is
somewhat progressive--at least is used to
be--if your income is reduced you will pay less--sometimes a lot less--in taxes
(a 'progressive' tax system doesn't mean
it's enlightened, just that you're supposed to pay taxes at a higher rate if
you make more money).
BTW, a 'lobbyist' is a person or organization paid--by a group that has an
interest in some political topic--to
'encourage' politicians to see the wisdom of giving their constituency what
they want (you might know this process as
'bribery'). Yes, it stinks but that's the level we've sunk to here in the
USofA.
Bob
On 9/4/2011 7:25 AM, Austin Healey wrote:
> Off...
>
> Sorry to ask, but what does it mean "tax break"?
>
> Gergo
>
>
>
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Bob Spidell San Jose, CA bspidell at comcast.net
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