Those Loophole Houdinis May Escape Yet Again

It's a ritual as old as the revenue code itself: Financial engineers take advantage of loopholes to devise exotic tax shelters, enriching corporate clients under the nose of the Internal Revenue Service. Eventually, the revenooers get wise. If the IRS can't halt the abuses under existing law, it asks Capitol Hill for a legislative ban. But by the time Congress acts, the loophole Houdinis are devising ever more inventive ways to shelter income.

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