Libya

[Jalexian]

Ya, but many of the same loopholes available to those corporations are just as feasible and commonly used by individuals (I guess that's obvious given the legal status of corporations as individuals with all that entails). Not that closing them isn't a good idea, just doesn't seem like a problem soon to be fixed considering the individuals making the rules happen to be benefiting from the situation.

Btw we should slash the hell out of the military budget, and reinvest in education and infrastructure....who needs "defensive" capabilities well in excess of what would be required to kill every last person on the planet when what your defending is a crumbling visage of its former glory....

[Kyrillian]

There are many corporate loopholes that are pretty much impossible for an individual to utilize. The Double Irish one Joe referenced involves setting up dummy corporations in various countries and basically shifting around profits based on which countries have a more favorable tax rate. More on that here:
http://en.wikipedia.org/wiki/Double_Irish_Arrangement

I don't have the means to set up dummy corporations in Ireland to pay less in taxes

Even Warren Buffet made a comment not to long ago that his secretary pays more in taxes than he does.

On a smaller scale I know plenty of small business owners who use their businesses to fund their lifestyle. Basically what they do is buy their houses, cars, etc. through the business so the money never passes through to become profits or earned income. Say their business made $500,000 in revenue, they spend $400,000 of that on various expenses such as a car for their wife, a new computer for their son, actual costs to run the business, etc. Then they contribute the max to their retirement plans for themselves AND their wife who is an employee even though she never actually works, then they pay themselves a salary of whatever is left and basically pay no tax.

That abuse is EXTREMELY popular and widespread.

[Chadwick]

Well, rich. If you had any idea what small business pay in taxes you would realize we have to do that just to come close to a level playing field with regards to overall tax burden. Its built right into the tax code. If small business owners didn't operate that way they would effectively get taxed at about 60-70%...

[Chadwick]

If you think it's such a great deal and so unfair to the "working class", start your own business why dont you...

[Kyrillian]

I don't think there shouldn't be tax advantages for small businesses. We need them to promote people opening small businesses. But it's the abuse that goes through the system that gets me.

Now I am a complete hypocrite because once we add another $50 million in client assets we may go independant and take advantage of these loopholes If everyone is doing it...