I agree that a VAT or flat tax would be appealing and eliminate some of the convolutions of our complicated tax code. Tax code revision seems to come up every election, but I think that degree of simplification is just too big a change for people to handle and too many special interests among the law makers.

I also agree that the term loophole may depend on the user of the word, but I just did a simple search and these are what at least one source considers "tax loopholes" that are available to the wealthy. Probably the one that comes up most often is the capital gains tax, which allows people like Warren Buffet be in a lower tax rate than his secretary. Is that truly the intent of a progressive tax structure, or is it the best way to stimulate investment growth that benefits everyone?
http://www.bankrate.com/finance/taxe...it-rich-1.aspx