How Treasury's Tax Loophole Mistake Saves Companies Billions
The story of the "check the box" loophole, which allows U.S.
companies to choose for themselves how to classify their subsidiaries
for tax purposes, and a companion policy known as the "look-through"
rule, shows how Washington bureaucrats, lobbyists and politicians have
worked together—sometimes wittingly—to save money for American
corporations and deprive the federal government of billions in tax
revenue each year.
What began in 1996 as an effort by the Treasury Department to
simplify the U.S. tax code mistakenly ended up as a massive tax loophole
for corporate America, which seized upon it and has never let go.
Mistake? Yeah, right.
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