There are some "loopholes" that deserve being closed.
First, let's take a look at "GREEN". Wind, solar, unproven insulation methods, ethanol, etc. I mean, fifty cents per gallon ... outright cash? Not to mention the tariffs placed on the imported stuff.
Those are outright grants and/or credits. They are not deductions.
Why, if an industry cannot compete, should it be subsidized to the detriment of those that are successful?
There is a plethora of examples. However, a few hundred pages, contained within one post, is truly not in place on a forum
Another thing (probably meaningless in the overall scheme of things) to consider .... a hedge fund manager's bonus may be taxed at the capital gains rate.
Although, it is a percentage of profits that were generated by trades that qualified to be taxed at that rate ... they were profits generated by other's investment(s), not their own.
That stuff, when you really consider it, should be taxed as ordinary earned income and subject to the limitless medicare tax.
C'mon, let's say you make 50 million dollars, in commission. Why should that be treated differently than a hedge fund manager's percentage of profit bonus?
The hedge fund manager did not have his own skin in the game. NOW, the money that he/she makes that was based, solely, upon their own investments, that's another story.
There has been talk about changing their classification for years. However, that seemingly ceased when this administration (Barak Hussein Obama) took office. Perhaps, it just might have something to do with his "backers"?
There are many inequities within the tax code. You've addressed something that should be considered exceptionally fair (bonafide business expense).
But, look at the subsidies, credits, etc (earned income credit, child care credit ... why should someone that has chilluns a-plenty pay fewer taxes than a childless couple, or those with few children?).
".Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it"