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Can there be a bad tax cut?

July 27, 2009

Yes. The Tax Policy Blog explains:

That is, suppose the Democrats gave up on trying to force (via regulation) radio stations to give "equal time" to differing political viewpoints. And now instead, suppose they put into law a (nonrefundable) "Talk Radio Fairness Tax Credit" that would be given to radio stations based upon the number of hours in a day that a liberal talk show host was on the air. (There would be a department within the IRS to determine who qualifies as a liberal host.)
So the big media giants like Clear Channel or Cumulus could get huge tax reductions on their tax bills for putting on the air Ed Schultz, Rachel Maddow, or Thom Hartmann in place of say Sean Hannity, Glenn Beck or Rush Limbaugh.

According to some who have the de facto position of supporting all tax cuts and who abhor the term "tax expenditures," this must not only be a good tax cut (because all tax cuts are good), it's also not a "subsidy" to the political left because tax expenditures aren't like spending. It would just be a reduction in taxes or the government taking less of the people's money (which is always good).

Substitue "film tax credits" for "talk show credits" and they already are describing tax policy in Iowa.

Tags: corporate welfare.Economic development.harold hill.Tax Policy Blog.