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Let's separate loopholes from incentives. Best example: even though there is "incentive" to stow your wealth in an offshore account, I'd like to call that a loophole. I guess by loopholes, I mean straight up tax evasion. And I'm under the impression that there's a LOT of that going on, but I don't know that anyone has accurately quantified just how much. Anyway, this isn't in the realm of things that I get payed to know, so I'm pretty lacking in concept. Feel free to school me :).