Originally Posted by donkhater
After reading through the thread, I think the biggest poit has been missed:
If loopholes like this are disgusting, then why did our representatives agree with them?
You can demonize the wealthy all you like. In the end, even if the rich offered inticements for loopholes like this, our representatives, OUR GOVERMENT went along with it.
The left-leaning on this thread are completely and utterly missing listopencil's point: These loopholes don't appear out of nowhere. They were put into law by GOVERNMENT officials. Yes, as favors most likely. But it is this flaw in the tax code that allows this type of behavior to exist.
Why does the US have one of the highest coroporate tax rates in the world that seemingly no big coropartion pays? It is so our GOVERNMENT representatives can extort campaign fees from them for favors.
Our current tax code is ripe with this. In the end, the blame is on those who pass the laws not those that follow them.
This loophole is the result of slick lawyering, not a law passed to generate it. Hedge funders had been warned by the government previoulsy that this technique may not be legal.