IF Obama knows of the tax loop holes in the USA tax code, WHY has he not changed it?

Because just closing tax loop holes amounts to a tax increase as the amount of over all tax collected from an individual increases.

Further the tax code through the use of deductions (or not) is a way in which the government can manipulate behavior. A tax break can be used to reward specific activities which the government wishes to encourage. Such as an IRA deduction to encourage saving for retirement.

Generally the deductions benefit the masses and the relative number of abusers is low by comparison. Removing the deduction thus becomes a third rail issue for a politician who wishes to get re elected as they cannot afford to tick off too many voters because closing a loop hole removes a popular tax deduction from the masses as well. Especially if the net tax increases because of the deduction removal.

Also consider that some loop holes do not provide tax avoidance but merely defer taxation to a later date. The tax is collected at a later date when the individual may be able to limit their income an thus pay less tax. This is the case with IRA's . Some taxes adress loophole issues such as an IRA which limits how much of a deduction is available based on the individuals income.

In order to close deductions and not collect more tax there must be a simultaneous reduction in the tax rate. This is what Romney means by revenue neutral with his plan of closing loop holes and lowering taxes. The net result is an over all lower ing of the tax rate yet still collect the same amount of revenue.the reason for doing this is to benefit small business which for many file individual taxes.

Every loophole in the tax code has one or more congressman to defend it, and a gentleman's agreement not to go after each others loop holes because the corporations that lobby for the are the source of campaign funds. The only way the tax code ever get clean up is with a major tax reform that gets every bodies loophole at the same time that is in the public eye. The president has very little to do with it, it must be a bipartisan agreement in congress, and it usually take a cut in tax rates to get it passed. It current congress can not even do the most basic things, like passing and increase in the debt limit without a major fight. We almost defaulted on the debt because they could not get their act together.

Questions like this show just how profoundly unpatriotic you cons are. Obama has no authority to change the tax code -- that is strictly up to Congress. If you knew anything at all about American government, you would know that.

Why does that make you unpatriotic? Because if you really cared ANYTHING about America, you'd make the minimal effort to learn at least the basics about how your country works. Since you obviously don't give a damn, you can't be a patriot.

All changes in the tax code have to start in the House of Representatives, which is controlled by the do nothing Republicans who will fight long and hard to make sure their wealthy donors continue to have loopholes so they can hide their money and not pay their fair share.

because Presidents don't make laws.

Congress makes laws.

All the President can do is command the armed forces and advise the Congress about what laws to pass.

The term all talk no action best describes this President.

I find it interesting that Obama couldn't identify one specific tax loop hole to change.

republicans have the majority and pres cant intoduce bills

Civics 101

It's clear that you are ignorant of how legislation becomes law. I bet that you're a conservative.