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Monday, August 9, 2010

Tax Code Rewards Corporate Indebtedness

“U.S. companies have had a long love affair with debt, and Washington has tacitly approved. Although the tax benefits are not the only driver of corporate America’s preference for loans — cheap rates and corporate strategy, as in Macy’s case, are other major factors — the tax code often tips the scales toward using debt for deals or for expanding a business.” (Washington Post, Monday)

Industrial policy by subtle means.

FEE Timely Classic
“Taxation as Vandalism” by Lachlan Markay