Wednesday, October 26, 2011

And third in the Google search results...


Third on the list returned by Google (see my earlier post for numbers 1 and 2) was Interfluidity :: Eliminate the business interest tax deduction.

Steve Waldman writes:

Eliminate the tax deductibility of interest payments by businesses. Debt financing externalizes the risks of business activity and magnifies social costs, while equity financing concentrates risk among stockholders who signed up to bear it. Yet under current rules, taxpayers literally pay firms to get rid of stockholders and take on ever more debt.

Well said, sir.

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