Topic: Tax Loophole

The IRS is investigating whether Donald Trump used a tax loophole to double-dip on losses related to the Trump Tower in Chicago. Reports from the New York Times and ProPublica suggest the former president may owe $100 million in back taxes following an audit of his 2008 filings.

President Obama addressed the Panama Papers by emphasizing that much of the tax avoidance depicted is actually legal under current law. The hosts review an infographic detailing legitimate and illegitimate uses for shell corporations, ranging from protecting trade secrets to hiding assets during divorces.

President Obama's budget proposal includes measures to close tax loopholes that allow corporations to renounce their U.S. citizenship for financial gain. The debate centers on whether companies have a patriotic duty to pay higher taxes or a fiduciary responsibility to shareholders to minimize costs. Critics argue that if the tax code allows these maneuvers, corporations are merely following the rules of the system.

The hosts argue that President Obama successfully used sequestration to cut the military budget while shifting blame to Congressional Republicans. They note that despite warnings of economic damage, defense stocks like Raytheon and Boeing reached new highs following the signing of the cuts. The segment analyzes the "wasteful tax loophole" rhetoric used in the President's weekly address.

An analysis of Senate Resolution 2204 reveals that the "repeal" of oil subsidies actually targets Section 199 of the Internal Revenue Code, which provides a 9% deduction for domestic production. The hosts point out that this deduction also applies to the film industry and software companies like Apple, suggesting that removing it only for oil companies would simply increase consumer gas prices.