WHAT’S THE DIFFERENCE between a tax break and a tax loophole?
Tax breaks are legitimate deductions that I make and loopholes are shady tax dodges that others use. Seriously, they’re all what economists call tax expenditures. The only difference between them is whether they’re progressive or regressive, and how much they improve equality.
Some tax expenditures benefit low and middle-income families such as deductions for union dues and post-secondary education. Others benefit wealthy Canadians such as the mineral exploration deduction and the capital gains allowance.
David Charbonneau is a retired TRU electronics instructor who hosts a blog at http://www.eyeviewkamloops.wordpress.com.