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.