Tax loopholes are universally denounced across the political spectrum. Democrats revile them as egregious giveaways to the “rich” that should all be tightly sealed up in the interests of “revenue enhancement” for deficit reduction, infrastructure investment, propping up collapsing entitlement programs, etc. Republicans condemn them as major barriers to the implementation of a more business- and investor-friendly flat tax. Even free market economists oppose tax loopholes as inefficient and “non-neutral” to the market economy’s allocation of resources–as if there existed an optimal pattern of coercive redistribution of income from productive, private taxpayers to parasitic, political tax-consumers that was neutral to the market.
Note the above was originally posted by Salerno at The Circle Bastiat.