Shutdown expensive unpopular loopholes -$278 Billion
The Progressive Caucus targets five loopholes in particular, which it claims could bring in $278 billion over 10 years.-The $17 billion carried interest loophole, which allows hedge fund managers and other investors to count certain types of compensation as investment income rather than ordinary income.
-A $4 billion loophole that gives private jet owners special tax depreciation benefits and allows yacht owners to decrease income tax bills by claiming the vessel as a second home.
-The U.S. could make $161 billion by closing a loophole that allows offshore profit shifting, and $71 billion by closing the foreign-earned income loophole, which allows Americans couples working abroad to avoid U.S. federal taxes on the first $190,200 of income.
- The proposal would also close the $25 billion "Facebook Loophole," which allows companies to deduct stock options cashed in by an employee at an inflated current market value rather than the original cost.
