Another example of how the tax code is structured to screw the working class hero
It used to be that a citizen consumer could deduct loan/credit interest charged(besides the home mortgage interest).
Buy a car,get a loan, deduct the interest. Get a student loan, deduct the interest. Simply stated, everything was done to create a
economy based on consumption. Then when the people were 'hooked' on easy credit and habituated into 'keeping up with the Jones'es'
the government decided to change the tax code so that such interest was no longer deductible from one's earnings. (Oh, and yeah, there
was a time when ALL medical expenses above $750 were deductible)
Now it's trying to do a small scale similar thing but for 'business' and here's an article that shows the 'name of that tune':
"Interest on debt has been fully deductible for 100 years — encouraging factory expansions and hiring for new initiatives, and fueling a spate of private equity takeovers. The deductions totaled more than $8.5 trillion in a decade by one estimate. As part of tax reform and discussions about the U.S. debt, both Democratic and Republican lawmakers are calling for limits. "
"By deducting interest expenses, companies can reduce the amount of income that’s available to be taxed. That makes borrowing a more attractive option for businesses to finance operations or capital investments. In turn, additional borrowing supports the $5.9 trillion market for dollar-denominated corporate debt by supplying investors with interest-bearing securities. In 2013, JPMorgan Chase and Apple lead borrowers in dollar-denominated bonds."
"Private-equity firms, which on average funded their takeovers of companies last year using half-cash and half-debt, would see their costs soar if the tax deduction on interest is limited or eliminated. "
Ok, who wants to bet this doesn't occur? And it's not like the share of government taxes from business-mainly large corporate business- has not been going down and increasing the burden on wage earners !
It won't happen but I'll keep wishing the day will come when students have to write a paper on The People's History of the United States and on on the video "America's Ruling Class' before they can graduate high school.