Tax Loopholes

Tax loopholes are legal methods within the tax code that allow individuals or businesses to reduce their tax liability through specific deductions, credits, or arrangements. They exploit gaps or ambiguities in legislation to lower taxes owed without violating the law. While they are legal, tax loopholes can sometimes be used to minimize taxes more than intended, leading to debates about fairness and fiscal policy. Essentially, they are legal ways to "bend" the rules to pay less tax than the standard rate, often benefiting wealthy taxpayers or large corporations.