What must be avoided, however, is a law that avoids reasonable standards in favor of a narrow list of prohibitions. Rather than stopping abuses, this approach would only provide a roadmap for tax cheats. This is particularly true when the parties seek to avoid judicial principles developed to deny tax benefits to overly tax-motivated transactions. Taxpayers and their advisors know that relative certainty can easily be achieved in legitimate business transactions by steering a safer course and staying in the middle of the road. The more clearly the transaction stays within established judicial and administrative principles, the more certainty is assured.
Today there are many inequities and injustices associated with the federal tax code.
Some of the worst arise from those who use abusive tax shelters to exploit tax loopholes.