The Politics of Loopholes

The Improbable Prospects for U.S. Tax Reform

John F. Witte

• Publisher: Praeger
• Year: 2016
• Print ISBN: 9781440843419
• eBook ISBN: 9798216129974
• Edition: 1
• Topic: Business
• Subtopic: Taxation
• Index: Business

What are the implications and likelihood of reform of the income tax system in the United States—specifically, the expansion and scope of the tax "expenditure" (loophole) system embedded in the income tax codes? This book details the tax system that now provides for more than 200 tax expenditures, highlighting the potential lost tax dollars. Income tax policy and politics is an inherently complex and potentially confusing topic. This book makes the tax loophole system understandable for those without in-depth knowledge about taxes. It explains what our tax system looks like, why it is set up as it is, and what effects it has on raising revenue (and thus deficits) and the furtherance of other policy goals. Additionally, it explains why, despite popular and political desires, a significant overhaul of the tax system is very unlikely to be enacted: because tax expenditures (otherwise known as loopholes) benefit all Americans in some way and are supported as policy by both political parties. Written by John F. Witte, an established expert in tax policy and policy analysis, the book provides a balanced viewpoint that discusses the implications of reform of the income tax system in the United States, demonstrates the range of individuals who are affected by various provisions, and identifies what effects loopholes have on policy goals. Readers will see how both political parties are responsible for the creation and expansion of various loopholes, understand why many of these provisions make sound policy sense, and grasp how the tax code is affected by political desires and policy goals.

Table of contents

• Cover
• Title Page
• Copyright
• Dedication
• Contents
• List of Tables and Figures
• Preface
• Acknowledgments
• One: Introduction
• Two: Tax Reform in Theory and Practice
• Three: A Brief Thematic History of the Income Tax
• Four: Tax Expenditures (Loopholes)
• Five: Tax Expenditures and Economic Behavior
• Six: Tax Expenditures for Human Resources and Income Support
• Seven: Tax Expenditures for Intergovernmental Transactions and Special Groups
• Eight: Using the Tax System for Nonrevenue Public Policies
• Bibliography
• Index