Loopholes and Tax "Reform"

By definition a loophole is any tax deduction or credit for which somebody, other than you, is entitled to claim. Let’s face it we all have grown up with cherished tax deductions we love almost as much as friends and family. The mere thought of not being able to deduct mortgage interest or a charitable deduction brings chills to your spine. But what are the top tax loopholes that have helped create the hole in the federal fisk? For those few with inquisitive minds they are: the home mortgage interest deduction, charitable contributions, tax deductions for retirement plans and tax-deferred accounts of all varieties, the exclusion for employer-provided health insurance, the favorable tax rates for qualified dividends and long-term capital gain, exclusion of some portion of Social Security benefits from taxation, the deduction for state and local income tax, or real property tax deduction, the earned income credit and the child tax credit. So if anyone is planning to take a shot at tax reform these loopholes will be primary targets. But you can continue to sleep nights, all of them have well paid and well positioned lobbyists in Congress steadfast in their resolve not to let their prize deductions or credits go down the drain. Remember we have the best Congress that money can buy... and it does.