A “loophole” is wrongly used as a synonym for some kind of privilege.  People often refer to it as having an immoral character.  It’s neither of those.  It’s simply means they’re following the tax law.  Many will call certain tax write-offs “loopholes” simply because they don’t like them.  Anytime someone says this, what they’re really saying is they think someone else should pay more in taxes than they do.

This absurd term can be used by many.  A company may use the term to harm their competitors.  A leftist may use the term because they’re envious.  It’s commonly used out of pure ignorance.  They’re really saying someone else should have more of their money taken away.  The term is used to arouse emotion.  Failure to grasp the meaning of the term can cause you to repeat propaganda.  The statists want to close these “loopholes” so people pay more in taxes.

Regardless of what they pay in taxes, it will not be enough.  They will claim others should pay their “fair share.”  That really just means more.  It doesn’t matter to them how much of someone else’s money is stolen, they think it should be more.  Just as Walter Williams said, “But let me offer you my definition of social justice: I keep what I earn and you keep what you earn. Do you disagree?  Well then tell me how much of what I earn belongs to you – and why?”

What exactly is your “fair share” of someone else’s income?  It’s robbery if you take your “fair share” from someone on the street.  How isn’t it considered robbery if you vote for someone to do the same?  The statists are well aware this is robbery.  They won’t even try to explain it.  They’ll engage in personal attacks and the like.  Many think they’ll be the beneficiaries.  They are amazingly wrong.  They will be the victims.

A “loophole” means they’re following tax law.  It’s an emotive term to disguise what it is so the statists can get more to support violence.  Imagine voting on people to pay their “fair share” in other situations.  You go out to eat with other friends.  Your friends vote for you to pay the bill because it’s only fair.  Are you obliged to pay the bill?  It’s ridiculous in that situation, and it’s the same on a large scale.  If anything, these “loopholes” should be expanded.

References

Ludwig von Mises; Liberty & Property

Murray Rothbard; Man, Economy, and State