These loopholes are bad policy even in the best of circumstances, but it would be unconscionable to allow them to continue if we can use revenue from closing them to avoid the devastating effect sequestration would have on national security, homeland defense, law enforcement, public safety, education and other important priorities. Sen. Carl Levin (D-MI).
Amid last week's face-off between the White House and Congress over sequestration, Senators Carl Levin (D-MI) and Sheldon Whitehouse (D-RI) introduced the Cut Unjustified Tax Loopholes Act, also known as the CUT Loopholes Act, or S. 268. The bill is aimed at curbing offshore tax abuses and strengthening tax enforcement, but also seeks to end excessive corporate tax deductions for stock options, close the blended tax rate loophole for derivatives, and end the carried interest loophole. These provisions are popular among American voters, but are sure to raise some eyebrows on Wall Street and in US board rooms.