Here's a tax loophole that can surely be closed:
Closing the Hedge Fund Manager Loophole by Pat Garafalo, Think Progress, July 6:
One of the tax breaks upon which President Obama has focused is a provision that allows hedge fund managers — who make billions annually — to receive a substantial tax break. This particular tax break, known as the carried-interest loophole, allows hedge fund managers to treat the money they receive from investors as capital gains, subject to a 15 percent tax rate. Though this money is a paycheck received for services, just like a movie star receiving a bonus if her movie does well, it’s treated as investment income.
Garafalo says closing this loophole would save $4 billion a year.
A little over a year ago James Surowiecki wrote about this in the New Yorker ("Special Interest" March 15, 2010)
The Hedge Fund Law Blog presents the other side of the issue.