Obama, as a Democratic president, should be embarrassed and ashamed that he has not closed this loophole. Treasury has the power to unilaterally do so, but yet

Obama, as a Democratic president, should be embarrassed and ashamed that he has not closed this loophole. Treasury has the power to unilaterally do so, but yet America's regressive tax policies with all there undesirable consequences to exists. Misallocation of economic resources towards tax-effective financial activities over other more productive, but less tax-effective, activities. Increasing wealth disparity in this country--so much so that the Fed is basically afraid to raise rates because it would lower asset prices.