The provision, known as the domestic production activities deduction, gave companies a tax break on income they earned from making things in the United States. “This has been a boondoggle tax expenditure,” said Robert J. Shapiro, a former Commerce Department official who founded the economic advisory firm Sonecon. You are always liable to create tax loopholes that grow.”The government initially estimated that the 2004 law would cost a net $27.3 billion from 2005 through 2014. gave Houdini a refund of close to $300,000. Then, when it realized what had happened, it doubled back and audited the company, demanding that Houdini return the money.

Source: New York Times December 27, 2017 22:52 UTC