On Wednesday I quoted Alvin Warren from the Yale Law Review:
The unlimited deduction for corporate interest payments originated in 1918 as a temporary measure designed to equalize the effects of the World War I excess profits tax.
I thought that was interesting. So I went back to the JSTOR page and found this footnote:
"Congress thought it was 'only fair' that interest
on corporate indebtedness be fully deductible."
It's not the Federal Reserve that messed up our economy. It's Congress.
And the level of their economic analysis is: it's only fair.
Don't blame the Fed for our economic troubles. Blame Congress.
Or both. Blame both. But don't forget to point the finger at Congress.
ReplyDelete