| Generally, I would say you are right, but it is worthwhile to consider the impact, intended or not, of various regulations, deductions/credits, taxes, and fees. I included the business about the restaurants, not because I am keen to sustain loopholes, but because a less devastating phase- out would have been advisable. Also, as matter of policy, and regardless of economic impact, one might have some interest in employing such mechanisms. For example, it is unlikely that we will soon eliminate the tax advantages enjoyed by non- profits, since it encourages beneficent activities. There has been some success with the use of tax incentives in the creation of "enterprise zones" in the ghetto, although it has not gone far enough. Also, we have structured the law to encourage "fishing expeditions" for deep pockets, and might consider how to discourage such abuse......... |
