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Article: SHOULD TAX SYSTEM ENCOURAGE CORPORATE DEBT?
- Article from:
- THE JOURNAL RECORD
- Article date:
- May 29, 1990
- Author:
CopyrightCopyright (null) The Journal Record. Provided by ProQuest LLC. (Hide copyright information)
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In the 1980s, the American people learned the wonderful uses of
debt - government, business and personal, the underlying urge in all
three being the abilty to buy things now, not later.
They also learned the penalties, especially as high interest
rates denied them the opportunity not just to buy for the future but
to finance the present and the past as well.
The Gramm-Rudman Act forced government to at least attempt
scaling back, and the phasing out of tax deductions on installment
debt has made individuals more conscious of saving rather than
spending.
But business debt is another matter. It is still encouraged, at
least by the tax system.
At a time when concerns about ...