What is a Tax Loophole? A Tax Loophole is a Tax Hike

Tax Loophole Closed. Tax Hike.

When tax law is written, and someone claims there is a “loophole” letting someone off the hook – that is, someone has to pay the tax, while another doesn’t, it’s not a loophole, it a tax law. When the tax law is changed (closing a so-called loophole) it becomes a tax hike. We must be mindful of this as we listen to talk of no tax hikes, just closing loopholes. Some businesses will receive a tax hike, that may spur layoffs, or even closing their doors.

Thanks to Gary Varvel for cartoon.