Business Tax Deductions

Wolf seems to feel that a business deduction is money lost to the government. In fact, in almost all cases one company’s business deduction is someone else’s taxable income.

When Iacocca got his $29 million one year, a tax deduction for Chrysler, it represented a major tax bill to Iacocca. Tax deductions for business jets crisscrossing the country represent the timely transportation of captains of industry to the places they need to be so they can be more productive for their companies. This generates more taxable income for those companies, and in addition, the expense of these business jets generates taxable income and jobs for aircraft manufacturers, pilots, controllers, mechanics, and a host of other related services.

Perhaps Wolf would be happier if we all worked for the government, we all got paid the same thing, and we all gave half of it back to the government to support the tax system.

I like our progressive tax system the best. The guy at the bottom pays little or no taxes and the guy at the top pays the most. The Tax Reform Act of 1986 made sure that this concept, which started in the second decade of this century, was reinforced and closed most of the loopholes.

PETER SCHARFF

Culver City