There's a huge difference between tax loopholes and legitimate tax reductions. The Mortgage Interest Tax Reduction (when not being abused) and the Earned Income tax credit are both examples of legitimate tax reductions that help a large number of average Americans. The tax loopholes that appear below are not. Loopholes are created by dubious politicians for the sole purpose of allowing their wealthy benefactors to get away with not paying their fair share of taxes. They exist for that purpose only. If they do happen to help average Americans in some practical way it is an anomaly. Instead, those loopholes inevitably cost average taxpayers more money in the long run and cause the closure of social programs that average Americans depend on everyday, in order to make up for the shortfalls in the federal budget created by the debt-creating, budget-robbing, mind-numbingly stupid tax loopholes in the first place.
There are probably hundreds of these debt-creating, budget-robbing, mind-numbingly stupid tax loopholes in the U.S. tax code. Now, given the current dysfunctional state of our federal government it's only mildly shocking that some of the most absurd debt-creating, budget-robbing, mind-numbingly stupid tax loopholes on the books are ones Republicans are stubbornly refusing to close right now.
The website Alternet recently highlighted some of those debt-creating, budget-robbing, mind-numbingly stupid tax loopholes that Speaker John Boehner is protecting at the expense of average, hardworking taxpayers who cannot take advantage of the spoils our government lavishes upon the one-percent.
If the following doesn't disgust you, you may be either a one-percenter or a dubious politician. (who probably is a one-percenter)
There are ten loopholes altogether in the article but for the sake of brevity; here are just a few. (listed in no particular order or degree of nauseating offensiveness) Some you may know about. Others are more obscure to the average American.
• According to the New york Times, corporate boards that own and use private jets do so under the pretense of "security," therefore avoiding taxes. To me, this doesn't even pass the laugh test. If CEO's are that insecure, they could hire the best bodyguard money can buy (one for every day of the week indefinitely) and then fly first-class. This would cost much less than the price of say, for instance, an Airbus A380, (@ $500 million) a Boeing 747-400 (@ a mere $200 million) or a wide array of other over-priced [corporate] jets that would surely tickle the fancy of any master-of-the-universe-wannabe.
• My own state of Florida perpetuates its own brand of creative tax evasion by offering its wealthiest residence agriculture tax breaks for inviting a few cows to graze on their property. I'm ashamed to admit that among the recipients of this sham is my own Democratic U.S. Senator Bill Nelson (for whom I voted in every election he's run in since the 'eighties) and Disney World. (who I used to work for)
• Our next entry was personally written by none other than Senate Minority Leader Mitch (the turtle) McConnell back in 2008. Nicknamed "the Bluegrass Boondoggle" this egregious tax loophole allow wealthy horse owners to write them off on their tax returns anytime they want, (including the very day they buy them -- as opposed to the day they die) in order to stave off depreciation. This little gem of a loophole can be worth up to $126 million over ten years. McConnell justifies this exercise in tax evasion by claiming it helps the "farm economy."
• Our last entry into the realm of tax evasion ignominy is one that arguably makes the least sense of all. It has been in existence for at least a decade, and is definitely counterproductive to making the necessary transformation from fossil fuel into a sustainable green energy socioeconomic structure for the 21st Century. When you purchase a large SUV (rated at 6,000 pounds unloaded gross vehicle weight or more) the government gives you a tax break. The bigger and more luxurious the SUV is the bigger tax break you get. Now, this loophole might make sense somewhere... but that somewhere is not on Planet Earth. Buyers actually receive incentives to perpetuate fossil fuel production, which in turn is bad for the environment.
I can't believe the American people put up with this crap. Strange days, indeed.
Here are some petitions to sign if you're so inclined.
Sign the Petition to Close Corporate Tax Loopholes and Stand Up for the Middle Class!
Close the Big Oil tax loopholes (Moveon.org)
Apple: Close tax loopholes that allow Apple to avoid paying their taxes!
Close Tax Loopholes on Churches
Close tax loopholes now
There are many more listed on this Google page.