Uncontrolled spending is the primary cause of our federal deficit and our federal debt. The debt we are creating for our children and grandchildren is immoral. We must cut spending. But, that does not mean that we should not close unfair tax loopholes, even if closing those loopholes increases tax revenues.
There are many egregious loopholes that only benefit favored special interests. “Carried interest” should be taxed a ordinary income at ordinary rates, not as capital gains at 15% – 20%. The “oil depletion allowance” should be ended. Interest and dividends should both be taxed as ordinary income and both should be deductible by the businesses that make the interest or dividend payments. Capital Gains should be taxed as ordinary income after the gain has been reduced for inflation. There are many more loopholes that are clearly unfair or that only benefit special interests. Closing unfair tax loopholes should be a part of the solution to our deficit problem.
There is no “uncontrolled spending”. Every dollar spent was approved by Congress and signed by the President (even the “entitlements”). I agree spending has to be reduced, but it needs to happen in a way that impacts the most vulnerable folks the least. The fiasco with the air traffic controllers shows that this will be very hard: the wealthy fuss very loudly when any spending that affects them is cut and they have the political power to get the cuts reversed, while low and middle income folks aren’t as well connected and have to grin and bear the impact of cuts.