Pay Off the Debt: Tax the Freakazoids

Kevin Drum has your clip-and-keep chart of the day:

What accounts for the growing U.S. debt load? You already know the answer, but CBPP has a new chart that lays it out yet again. What we're interested in is public debt — that is, debt that the government actually owes to other people. It's this debt that can cause problems if it gets out of hand. So here's where our projected debt in 2019 comes from:

[This chart] shows that the Bush-era tax cuts and the Iraq and Afghanistan wars — including their associated interest costs — account for almost half of the projected public debt in 2019 (measured as a share of the economy) if we continue current policies.

Altogether, the economic downturn, the measures enacted to combat it (including the 2009 Recovery Act), and the financial rescue legislation play a smaller role in the projected debt increase over the next decade. Public debt due to all other factors fell from over 30 percent of GDP in 2001 to 20 percent of GDP in 2019.

Put this one up on your refrigerator along with the last one. Then, if a friend comes over after watching Glenn Beck and insists that we're doomed, just point to the chart. If you want to save America from a crushing future debt burden, you need to repeal the Bush tax cuts, get out of Iraq and Afghanistan, and stop pursuing austerity policies that will slow down economic recovery.

Once we've done that, then it's time to talk about Medicare. But the other stuff comes first.

But Kevin doesn't mention where there are spare billions of dollars per year lying around, just waiting to be picked up and used to pay off that dangerous debt:

Tax breaks for freakazoids.

Diana B. Henriques at the NYT:

(Note: article published in 2006; tax exemption estimates are even older.)

The property tax exemption is one of the oldest tax breaks granted to religious organizations, but it is not the only one. Lawmakers and judges have also approved what amounts to special tax treatment for religious organizations and some of their employees, including exemptions on personal-income and payroll taxes, and have made it easier for them to get tax-exempt construction loans for purely religious projects.

Like the exemptions from federal and state regulations that have proliferated for religious groups in recent years, these tax breaks are widely defended both as an acknowledgment of religion’s contributions to society and as a barrier to unjustified government limitations on the liberty that religious organizations enjoy under the First Amendment.

But in some communities like South Bend, tolerance of religious tax breaks is fraying as local governments struggle to provide basic services with limited resources.

There are no national figures on how much money these tax breaks save religious organizations and on how much extra cost is shifted to other citizens. But a typical state, Colorado, reported that religious real estate valued at more than $1.1 billion was exempt from local property taxes there last year. Nationally, tax-exempt financing for religious organizations totaled at least $20 billion during the decade that ended last year.

Congressional budget records show that just the income tax breaks uniquely available for ministers, rabbis and other clergy members cost taxpayers just under $500 million a year.

And the price is almost certainly increasing, experts on taxation and congregational growth agreed, because today’s larger congregations need more land, employ more clergy members and pay them more money. Moreover, the definition of a religious mission is expanding beyond schools and hospitals to include operations as obscure as a biblical theme park in Florida and as upscale as a retirement community at Notre Dame.

If a 2006 estimate of just some of the tax breaks that fatten the freakazoids came to about $2.5 billion, I'd guess the real number back then was at least double that, and has doubled since.

Now $10 billion per year will barely keep a decent-sized Army in some desert hell-hole. But think of the ancillary benefits: freakazoids will be able to talk politics and promote or condemn political candidates as much as they want with no fear of losing their tax exemption.

It's such a shame that their high moral values about obeying the Constitution keeps them silent on political issues - imagine how much richer our national discourse would be if we only knew what they really thought!

I think $10 billion a year is a small price to pay for getting your Free Speech rights back, don't you?