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What is a “Tax Loophole”?

September 16, 2009

This is not the first time these “loopholes” have come up.  Throughout
the governor’s tenure, she has proposed closing these “loopholes” but
has had little success.  The “loopholes” in question are tax credits
that have been allowed for various segments of the business community
over the years.

These are not businesses taking advantage of omissions in the tax code
that allow them to lower there tax liability, as the phrase “loophole”
would normally suggest.  These are legitimate tax credits that the
state legislature and governors past and present have enacted to
encourage economic development.

There are many of them, and it is not our intent here to debate the
merits of specific credits that may be on the chopping block.  We
merely want to point out that when you hear that these “business
loopholes” may be cut or tightened, the target is not some unsavory
business owner cheating on his or her taxes.

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