How much is that deduction in the window?
Today, just about anything can become a sound argument with a little elbow grease. If you don’t think this is true, check out Frank Luntz, who is quite literally a professional spin artist – and I say that in awe, not in disrespect. His occupation is rewording commonly held ideas in order to rebrand them in a new negative or positive light. He is as brilliant as he is ethically challenged – but he’s simply doing what most pundits and columnists do, and that is to spin an idea so that the wheel stops on a certain side of the political roulette wheel. (If you are curious as to how Global Warming became Climate Change and Estate Tax became Death Tax, wonder no more – this is the work of Mr. Luntz.)
One example of how to make an argument for anything is to imagine an idea that is ridiculous, and then argue for it as if it was your passion. It’s actually kind of fun, since you can quickly see how pundits may not even have to believe in what they argue, but simply have to ponder the idea of what they are selling and invent talking points for others to believe it.
The absurd idea I’m arguing for in this example is: I should be able to claim my dog as a dependent on my taxes.
Here’s my HowTo guide:
Set up the ridiculous idea with historical similarities:
Over the past century, the IRS has corresponded to society’s needs through various programs, such as deductions for student loan interest, mortgages, educator expenses, and much more. Most recently we saw the “Clean Fuel Vehicle Deduction,” which came out of a perceived necessity created by skyrocketing oil markets, and this was a gracious turn by the elephant of government toward the “green” segment of the population.
Introduce the absurd idea with humility and practical terms (money as the key driver of change):
Bearing this ability to change, it seems remiss that no movement has begun for a pet owners deduction. While making this argument invites a certain backlash, legitimate points can be made, starting with our favorite statistic: money. In the past decade, pet expenses have increased 100% and we may only be at the knee of the curve of this trend. Annual pet expenditures in the US went from $17 billion in 1994 to $36 billion in 2005 (according to the American Pet Products Manufacturer’s Association). This growing market sector mirrors our society’s desires and needs, and with every new doggy daycare and boutique that opens downtown, another PetSmart springs up in a strip mall. The change is not subtle at all, and the economy grows with pet ownership.
Use the “We live in changing times” approach:
Why argue for a tax deduction for pet owners? Simply stated, because our increasingly transient society has made pets a quality-of-life issue. With the decline of the traditional family, siblings and parents often live on opposite ends of the country. Jobs leap from city to city and careers change by necessity in the dynamic economy. Landing a job after college or high school can dislocate a family, and to fill that void people have turned to pets. Also, careers demand more, making fewer professionals choose to have children.
Start dropping data and hyperlinks, let the red herrings and conflations fly:
With many single households and empty nests, the current situation doesn’t address a large body of the public. Households that lack any chance at deductions often have pets and pay anywhere from $12,000 up to $38,000 over a dog’s life of fourteen years (peteducation.com ). Compare these numbers to the cost of raising a child, which runs from $124,000 to $250,000 (moneycentral.msn.com). The numbers quoted for raising a child include college costs, so the assumption can be made that a child can be claimed as a dependent for approximately 23 years. With the standard deduction at $3,100 per year per dependent, a taxpayer with a child can reduce his amount due to Uncle Sam by $71,000.
When a pet dies, pet owners usually acquire a new pet, and so over those same 23 years, if we average the cost of pet ownership to be $25,000, the amount a pet owner will spend in 23 years comes out to just over $41,000.
Oh, the unfairness:
This means a pet owner pays 20% of what a parent pays, so why not assist pet owners with a comparable tax-deduction, or “pet-dependent” credit? An identification number for pets could simplify this, as pet vendors and groomers could send out annual statements to pet owners. Likewise, this would alleviate the cost for parents with traditional dependents. Parents with pets stand to gain more from this deduction than single households would, since they already foot the ever-growing bill for children.
Is it that crazy?
The argument might be perceived as the latest outcry of overly affectionate pet owners, but at this point, the emotional tie to pets has become so strong that arriving in the middle of a conversation, it is sometimes difficult to distinguish whether a person is praising a pet or a child. Certainly, the debate over whether the love for pets is equivalent to love for children will not find an answer in this short argument. However, while love for pets sometimes does go overboard, it is not for the state to measure affection, but instead we measure what we can. What can be quantified is money, the number of pets, and the fragmentation of society.
Drill down on the details and spin the verbiage:
On the IRS website, Topic 354 discusses what determines dependency status. The test for a dependent has five questions:
1. The Member of Household or Relationship Test: To meet this test, the dependent must live with you for the entire year. So far so good.
2. The Citizen or Resident Test: To be a citizen, a dependent must be born in the United States.
3. The Joint Return test: Does not apply, since pets do not file tax returns.
4. The Gross Income Test: A dependent cannot earn more than the standard deduction. Pets do not earn anything, leaving only one question left.
5. The Support Test: You must provide over half of the dependent’s support during the year. Clearly for pets, the amount of support is 100%.
Lastly, a dependant must have an identification number, and currently this is the only impediment to pets fitting into the role of a dependent.
In conclusion:
Surely if hobbies such as gambling can be deducted from taxes, a place on the 1040 for pets exists, too, particularly since the pursuit of happiness is often as simple as coming home to man’s best friend. Asking the elephant to dance is the hardest part, but it’s already been done with dollars. Now we have to see if she takes our hand for a spin.
Image: chrischapman - link
Follow Me…