While peddling the ludicrously named “Inflation Reduction Act” on CNN this past weekend, Joe Manchin claimed that Democrats were merely trying to “close the loopholes and collect the taxes that are owed to the Treasury and the United States people.”
In Washington, a “loophole” is a euphemism for some perfectly legal policy that Democrats have decided they want to regulate or tax. The word “loophole” suggests that some ambiguous wording or omissions in the text of a bill have allowed people to exploit the law. Few of the Democrats’ “loopholes” meet this definition. Indeed, in most cases, the “loopholes” they’re talking about were deliberately written to exist in their present form.
Take the “carried-interest loophole,” which intentionally functions in tax code as a means of incentivizing