When is a loophole not a loophole?

By
Industry Observer

There's a lot of talk about closing loopholes to reduce the federal deficit.  It seems that just about everyone wants to close just about all loopholes, sort of.  President Obama wants to make millionaires and billionaires stop deducting certain expenses on corporate jets, including accelerated depreciation.  That's a great proposal for getting votes since most voters don't have corporate jets.  I might even support that one.

What about the loophole that lets homeowners with mortgage debt get a nice tax deduction?  Is that a loophole?  Yep, it sure is.  What about the loophole that allows self employed people to deduct health insurance premiums?  Is that a loophole?  I think so. 

When is a loophole not a loophole?  Perhaps a loophole is something that allows someone else to deduct an amount from their income to avoid paying tax.  When I deduct something from my gross income to save on taxes it's not a loophole.  It's a benefit derived from my choice to behave in a certain economic way, and I deserve it. When you do it. it's a loophole.

So, the question remains, when is a loophole a loophole, and when is a loophole an incentive to behave in a way that helps the economy?  Do we really want to take away incentives for oil companies to produce oil and gas in America?  Would it be better if the domestic oil companies' tax loopholes were removed, possibly making it more profitable for many of them to go somewhere else?  Sometimes I think we're our own worst enemy.

 

Posted by

 Mike Carlier  Lakeville, MN

 

612-916-3033

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Groups:
Realtors®
The Lounge at Active Rain
Out Of The Box!
"Whacked"!!!
EXPRESS WITH WORDS AT ACTIVERAIN
Tags:
loophole

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,143,971
David Shamansky
US Mortgages - David Shamansky - Highlands Ranch, CO
Creative, Aggressive & 560 FICO - OK, Colorado Mtg

Oh its way beyond that. if they want to stop the bleeding maybe they can look at the 15% growth size of the federal government! Not only are they growing its size they are paying HUGE money to people.

John McCormack in AZ has a blog talking about this very thing you should check it out its beyond loopholes its calculated. The rest is propaganda spin

Nov 07, 2011 04:53 AM #1
Rainmaker
522,422
Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

They have to accelerate the growth plans to give them something to cut.  It's the same old same old...

Nov 07, 2011 04:59 AM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
522,422

Mike Carlier

More opinions than you want to hear about.
Everyone has opinions -- what's yours?
*
*
*
*
Spam prevention