Tax Loopholes Seen Costing Billions Annually

Original publication: Reuters

Date of publication: August 25, 2008

WASHINGTON - Tax and accounting loopholes that largely benefit rich taxpayers and companies cost the government $20 billion a year even as the pay gap between chief executives and employees has widened, two groups said on Monday.

The biggest loss comes from a "stock option accounting double standard" that allows corporations paying executives stock options to deduct more than their actual expenses, they said.

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