Lynn Stuart Parramore: Private Jet as Security Write Off?

Ten Most Insane Tax Loopholes. With the national tax filing deadline fast approaching, Americans are once again plopping down with pen, paper, and potentially Turbo-tax, to determine just how much they owe their state and federal governments, but while the popular refrain posits that nothing in life is certain but death and taxes, for many corporations and wealthy individuals, having to pay a tax bill, is anything but a certainty. Due to the proliferation of loopholes, deductions, credits, and the growing use of offshore tax evasions, many rich Americans and corporations, are able to dodge the bulk of, if not all, their taxes. Between 2008 and 2011, 26 major American corporations paid nothing in federal corporate income tax, despite making $205 billion in pretax profits. In 2011, the last year in which data is available, corporations paid just a 12.1 percent effective tax rate, the lowest in four decades. Many wealthy individuals, meanwhile, are able to drive their tax rates down, below the rate paid by middle class families. Some drive it all the way to zero. There are certainly large, systemic reasons for these disparities, but part of the problem is that the rich and the largest companies have access to a slew of tax breaks, from which the average household or small business derives very little benefit. Here are 10 of the most ridiculous: 1. CEO "private security." A "common corporate tax trick" according to the New York Times, is corporate boards paying for private jets, and other perks for their CEOs under the guise of security. As Steven Dadidoff reported, typically CEOs would have to pay taxes on these benefits, but if the benefit is classified as necessary for security purposes, the chief executive will pay a reduced tax bill, or sometimes no tax at all. 2. Florida cow scam: In Florida, wealthy developers, lawmakers, and even some corporations, game the tax code by placing cows on their land for a limited amount of time each year, thereby qualifying for agricultural tax breaks. Senator Ben Nelson, (D-FL) has benefited from this absurd loophole for years, as has Disney World. But Florida isn't the only offender. From rock stars in New Jersey, to movie stars in Colorado, tax breaks meant for farmers get gamed by the most privileged, using everything from sheep to beehives.
3. Facebook stock options: The social media giant Facebook made more than $1 billion in profits last year, but paid no corporate tax, thanks to a huge write off, after its initial public offering. In fact, the company received a refund of $451 million.