President Barack Obama said on Wednesday that Congress should close a tax loophole exploited by firms by locating their tax domiciles overseas but added that he is considering options to address the issue unilaterally because the trend must be ended.
“We can’t solve the entire problem administratively, but what we are doing is, are there elements to existing statutes that are interpreted by rule or by regulation or by tradition or practice that can at least discourage some of the folks who may be trying to take advantage of this loophole,” he said at a news conference, discussing the practice known as “inversion.”
“We don’t want to see this trend grow,” he added. “That kind of herd mentality is something we want to avoid, so we want to move quickly, as quickly as possible.
Oh good, “unilaterally”-we’re just not getting enough of that from this president!
Loopholes are a by product of a tax code run amok. Simplify the code, the loopholes are easy to strip away. Politicians who just talk about loopholes all the time do so because they never want to talk about simplifying anything. They definitely don’t want to talk about reducing taxes. Ever. It’s like severing an artery and addressing it by cleaning the blood on the carpet first.