WaPo Fails Tax Policy 101

J.D. Foster / August 09, 2010

There are many reasons tax reform remains a distant dream. Not “tax reform” disguising a tax hike as the Obama Administration envisions, but tax reform that would make U.S. companies and workers world-class competitors, ferret out tax cheats, and make paying taxes a little less onerous to taxpayers. Perhaps the most frustrating reason real tax reform cannot gain traction was on display in The Washington Post over the weekend.

In the Post’s business section there appeared an article on why businesses in America are so enamored of debt. The article argued that businesses take on so much debt because of powerful incentives in the tax code, especially the deductibility of interest expense. (more…)