We just need to close loopholes to prevent prevent the “expensing” of private corporate residences/retreats, private cars, and the like.
Thats harder than it looks.
A CEO could use a mechanism where the company pays the mortgage on a property with a lease-back to himself. The company then covers the cost of the lease back as part of the pay package … and covers the tax as well. The company can then use the interest deduction. The company could also buy the property with cash, but take out a loan on other business property.. and deduct that interest..
The more convoluted you make the tax system, the more the wealthy profit.. they can have full-time people dedicated to working out the nuances in the code, finding holes that the authors didn’t intend, or pushing congressional members to put exceptions in the code.
