Closing state's tax loopholes

With California facing a massive budget deficit, lawmakers have launched efforts to reduce or eliminate some of an estimated $50 billion in tax credits and deductions to help balance the books. Harrison Sheppard in the Daily News.

The credits - decried as "loopholes" by critics - range from mortgage-interest deductions and research credits for business to enterprise zones in the inner city.

Many of the targets are politically popular benefits that analysts say will be difficult to eliminate when a two-thirds vote is required. But Democratic lawmakers are vowing to solve an $8 billion deficit without relying exclusively on cutting state programs.