Paul L. Caron

Tuesday, April 18, 2017

Sen. Flake Releases Report on 'Outlandish Tax Rackets'


Sen. Jeff Flake (R-AZ), Tax Rackets: Outlandish Loopholes to Lower Tax Liabilities (press release):

As Tax Day approaches and Congress considers long-overdue tax reforms, the report is intended to highlight loopholes that create fake markets for unnecessary or unwanted goods and services; encourage more borrowing, spending, and taxing by local governments; and shift the tax burden to the middle class. ...

There are as many as 200 tax expenditures within the code that cost $1.23 trillion annually in forgone revenues. The handful of loopholes profiled in TAX RACKETS will cost as much as $50 billion over the next decade.

Wasteful tax expenditures intended to benefit specific industries profiled in this report include:

  • the write off for publishers to increase circulation;
  • write offs for gambling losses; and
  • tax credits for chicken poop power.

Tax expenditures being manipulated to avoid taxes or receive tax subsidies profiled in this report include:

  • foreign tax credits paid to U.S. businesses in Puerto Rico and then collected by the commonwealth’s government as part of a shell game;
  • Deductions for the cost of alpacas to receive the immediate depreciation available to small businesses for capital investments;
  • Conservation-easement tax deductions for golf course owners for maintaining their fairways; and
  • tax-exempt municipal bonds used by localities to finance golf courses and a megamall.

Fake markets for which the tax code is creating artificial supply and demand profiled in this report include alpacas, poultry poop power, losing lottery tickets, and golf courses.

Congressional News, Tax | Permalink


Don't tax me; don't tax thee; let's tax the feller behind the tree. Hey, who cut the tree down?

Posted by: Dale Spradling | Apr 19, 2017 5:46:08 AM