- Sep 19, 2011
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First what are the "corporate loopholes" that are being talked about being closed?
Of the total $653 billion in deduction
Amount of Deduction Type of deduction that government ALLOWS tax payer to subtract from taxes
Of the total $653 billion in deduction
Amount of Deduction Type of deduction that government ALLOWS tax payer to subtract from taxes
SOURCE: Tax Policy Center Briefing Book
For example assume the deduction of medical insurance premiums paid by employers is the single largest deductions of $131 billion.
What this means if this deduction is not allowed, then employers increase their adjusted taxable income by $131 billion.
If then the corporate tax rate is 35% then the government gets about $45 billion more. Sounds good right?
Wait though... if this deduction is removed... who will be paying the employees health insurance premiums?
