Republicans, do you think that closing tax loopholes will hurt the economy?

[Fuzzybigfoot]

Closing such loopholes would require people and the private sector to pay more to government, yes?  If so, why are so many mainstream Republican politicians for that and against tax hikes?  Don't both do the same thing to some affect?

[🐒Gods of Prosperity🔱🐲💸]

What Republicans are generally in favor of is closing the loopholes and lowering the rates. This would allow people to spend and invest money in the way they choose to rather than only in certain categories covered by the tax code.  If people are focused on exploiting tax incentives in order to avoid high rates, that can be a distraction or a barrier from the type of activity that would make the most economic sense otherwise, and the higher rates can harm individuals or businesses that cannot take advantage of the tax preferences. 
Plus, all that money spent on accountants to try to figure out or game the tax code isn't a very effective investment.

Basically, if you reduce tax loopholes you are reducing the interference of the government in the marketplace through the tax code.

[DC Al Fine]

Closing such loopholes would require people and the private sector to pay more to government, yes?  If so, why are so many mainstream Republican politicians for that and against tax hikes?  Don't both do the same thing to some affect?

Tax loopholes produce malinvestment because they subsidize certain behaviours. For example, the mortgage interest deduction gives you an incentive to not pay off your mortgage. Raising taxes exacerbates this problem. If I can deduct $1000 from my taxable income at a 35% marginal rate, I save $350. If I do the same thing at 50%, I save $500.

[Fuzzybigfoot]

Thanks, I always wondered about that.  lol 

[Oldiesfreak1854]

What Republicans are generally in favor of is closing the loopholes and lowering the rates. This would allow people to spend and invest money in the way they choose to rather than only in certain categories covered by the tax code.  If people are focused on exploiting tax incentives in order to avoid high rates, that can be a distraction or a barrier from the type of activity that would make the most economic sense otherwise, and the higher rates can harm individuals or businesses that cannot take advantage of the tax preferences. 
Plus, all that money spent on accountants to try to figure out or game the tax code isn't a very effective investment.

Basically, if you reduce tax loopholes you are reducing the interference of the government in the marketplace through the tax code.

I couldn't phrase it better myself.

[Maxwell]

What Republicans are generally in favor of is closing the loopholes and lowering the rates. This would allow people to spend and invest money in the way they choose to rather than only in certain categories covered by the tax code.  If people are focused on exploiting tax incentives in order to avoid high rates, that can be a distraction or a barrier from the type of activity that would make the most economic sense otherwise, and the higher rates can harm individuals or businesses that cannot take advantage of the tax preferences. 
Plus, all that money spent on accountants to try to figure out or game the tax code isn't a very effective investment.

Basically, if you reduce tax loopholes you are reducing the interference of the government in the marketplace through the tax code.

[t_host1]

Closing such loopholes would require people and the private sector to pay more to government, yes?  If so, why are so many mainstream Republican politicians for that and against tax hikes?  Don't both do the same thing to some affect?

Only bad for tax preparers with there being fewer tax deducts and credits. It's good, they'll have to layoff at the IRS, saving money, now that their will be no ObamaCare, shorter and fewer forms, and, the treasury will be bringing in more cash. The Romney 20% crossboard tax reduction will stir up all that evil econmic activity giving the offset, the relief to the deduct withdrawl.