4 ms·
A classic example of "we didn't intend for people to do that when we wrote the law!" One of the costs of living in a rule-of-law society is that sometimes the
by betterunix2 7y ago
A classic example of "we didn't intend for people to do that when we wrote the law!" One of the costs of living in a rule-of-law society is that sometimes the law winds up working in unexpected ways.
- zaroth 7y agoWhat do you mean? Section 1202 was very explicitly amended as written to stimulate investment in small business. It is a huge incentive for Series AA and A investment, particularly for smaller early stage investors where it can effectively double the return. It’s a fantastic policy to help small business raise money and also retain top talent versus the Goliaths. There is nothing unintentional about Section 1202. The value of the tax break was strengthened during the Bush stimulus, and then extended and eventually made permanent under Obama. It is a nice bit of tax policy with bipartisan support.
- betterunix2 7y agoI was referring to your definition of what a loophole is and the example of that (forming an S corp to avoid payroll taxes).