News Article

How the US tax code makes financial crisis more likely

Via aei-ideas.org » Submitted On Tue, 02/26/2013 - 5:45pm by Norman Wolfe

Issue: Tax Reform

One of the many flaws of the US tax code is its favoritism of debt over equity. It should be neutral. A new IMFreport attempts to show the risk of putting a thumb on the scale: That most corporate tax systems favor debt over equity finance is now widely recognized as, potentially, amplifying risks to financial stability.

Comments

I have a book and a YouTube video where I advocate a 5% flat tax on earned income, capital income and corporate profits. No deductions or exemptions. Everybody pays 5% of what they earn. With this tax plan the economy would take off like a rocket.

1 year 7 months ago

well, I wish you luck on that. It would certainly free the economy.
But you realize that Govt currently spends 24% of GDP. How do you propose to cut government spending by 79%? (including Social Security, Medicare, Interest on the National Debt)?

1 year 7 months ago
Log in or Register to write a comment.

In today's "Single Best Chart," Bloomberg's Scarlet Fu displays how inflation has increased in the 100 years since the creation of the Federal Reserve. She speaks on Bloomberg Television's "Bloomberg Surveillance

 … More
1 year 8 months ago
Log in or Register to write a comment.

The Fair Tax favors savings and punishes debt, just the opposite of our current income tax code.

 … More
1 year 8 months ago
Log in or Register to write a comment.

Capitalism is a loaded word and a point of division between a number of political and philosophical schools of thought. In that sense it is a wedge issue, one of the key wedge issues within the current left right paradigm.

 … More
1 year 8 months ago
Log in or Register to write a comment.

How The Democrats Caused The Financial Crisis: Starring Bill Clinton's HUD Secretary Andrew Cuomo And Barack Obama; With Special Guest Appearances By Bill Clinton And Jimmy Carter

 … More
1 year 8 months ago
Log in or Register to write a comment.

Enlightening. Thank you, Norm.

1 year 8 months ago
Log in or Register to write a comment.

Prosecutions in federal district courts in the United States (U.S.

 … More
1 year 8 months ago (Edited)
Log in or Register to write a comment.