Thursday, Mar 25, 2010
When sensible ideas are stamped on by the beneficiaries
FT: It is time to stop punishing prudence
Important article on the role of interest rate tax deductibility on the financial crisis, not to mention the housing market. An area ripe for reform, but guess what - the powerful interests who benefit from this fiscal distortion will kick and scream if anyone tries to do the sensible thing.
(Search the title in google to view the article)
Posted by letthemfall @ 10:47 AM (657 views) Add Comment
2 Comments
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1. mountain goat said...
Good article thanks.
"the tax bias that exists in favour of debt at the expense of equity in the US and UK" - taking on debt is more risky than saving capital, so you can see the rationale to give it a tax break. But when this risk is covered by the tax payer the whole thing looks corrupt.
2. drewster said...
Interesting that Germany managed to push through a change in 2008. Might that have something to do with why their economy is doing particularly well relative to others now?