Why does everyone keep calling previous economic stimulus initiatives “tax loopholes”? Tax policy has often been used as a means for stimulating some area of our economy.
For example, the home mortgage interest deduction was put in place to stimulate home purchases. and the lower long-term capital gains tax rate was used to encourage investments in companies to provide support for business expansion and job creation.
Do we want to eliminate these incentives and discourage the results? Where are the real tax loopholes?
Sustainable stimulus should come from projects that create revenue-generating benefits. For example, monorails such as those at Disney parks could be built in the center of most of our expressways (I-20 to Atlanta; I-75 to Charlotte, I-95 from way up north all the way down south) and thus provide revenue and jobs indefinitely. Also, people would have a choice as opposed to toll roads and more gas taxes. Seems plausible.