What are some of the most important targeted tax breaks or loopholes written into the code for corporations?
McIntyre: If you get narrow enough, they re less important. But some industry-specific ones are left. The independent oil producers, for example, get some breaks. The big deal items are more broadly available. For instance, companies write off their equipment much more quickly than it wears out. There are some explicit international loopholes, many of them fairly recent, that companies have lobbied through the Congress. The auto industry, which in many ways is really a financing industry these days, wants to treat a big share of its profits as off-shore. They have plenty of ears that want to listen to them in the Congress, and Congress has been passing legislation allowing them to do that. MM: How do stock options work as a tax avoidance mechanism? McIntyre: The laws are pretty clear that the current treatment is allowed, even though it may not make any sense. When a company s stock goes up in value, as it has for a lot of companies recently, they often pay their employees with an opti
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