Can Romney get away with the Lollipop Tax Cut 'Plan' Until November?

Carleen said:

Can you tell me how you know what you say is true? Thank You.

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A tax loophole is an exploitation of a tax law which can reduce or eliminate the tax liabilities of the filer. Quite often the original wording of a tax break is used to justify the use of a tax loophole. Several years ago, for example, a substantial tax break was offered to small companies who invested in SUVs and other heavy vehicles for their transportation fleets. Because the tax law allowed for 50% personal use, small business owners could upgrade their own personal vehicles to SUVs and still receive a tax credit. This exemplifies a tax loophole -- the original intent is not illegal, but the definition can be exploited for personal gain.

Few legislators would ever define a tax code change as a 'tax loophole.' After the changes have been adopted, savvy tax code experts and tax lawyers may discover flaws in the wording of the new law. Maggie says: THAT'S a loophole. Sometimes an obvious or potentially costly tax loophole is duly reported to lawmakers and the law is rewritten to close the loop. Other times the tax loophole may exist for years until a federal overseer or IRS agent discovers the mistake or exploitation.

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MaggieD said:

I don't understand. How does "revenue neutral" come into it? The loss of all of these deductions would bring money into the Treasury.

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MaggieD said:

Here's one source:



What is a Tax Loophole?

A loophole, by definition, is working outside the regulations. Mortgage deductions, etc., etc., are not loopholes. They are explicitly allowed.

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The truth is that a candidate who campaigns on the promise that he will turn the economy around cannot be forthright. America is approaching the so-called fiscal cliff. In January, the terms of the Budget Control Act of 2011 are scheduled to go into effect — the end of both the Bush tax cuts and payroll tax cuts and the slashing of $100 billion in defense and domestic spending known as sequestration. Whoever wins the election will jettison his campaign promises. Political cynicism will almost certainly deepen.

But even judged by the standards of past dichotomies between election pledges and the realities of governing, Romney has placed himself in an exceptionally untenable position. This season’s rhetoric has exposed the spuriousness of the inflated promises of the Republican nominee. The approaching emergency is real.

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Those who hope for Romney’s victory should pay attention to what he hasn’t said as much as to what he has.

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