Now, to be clear, I’m not defending the fact that some people benefit from “loopholes.” I would just as soon abolish all tax codes throughout the U.S., and start over from scratch. I would finance federal, State, and local governments entirely with income taxes, and have one tax rate with no exemptions, deductions, etc. There would be a basic federal rate, to which States and localities could add their own rates. Clarity about the effective tax rates of various States and localities would help businesses and individuals make better decisions about where to locate.
Maybe I’ll start a petition for a constitutional amendment that implements my modest proposal.