Tax Breaks For Debt is Stupid
I have posted previously that I think US tax policy encourages debt for the wrong reasons and that there are other ways to support programs that encourage people to build strong foundations. Ultimately there is a spread between borrowing and lending rates so overall debt hurts people and helps to make a much larger financial sector.
Well, here's a link to a report that says:
If the benefits are illusory, the costs are all too real. Economies work best, generally speaking, when people are making decisions based on economic fundamentals, not on tax considerations. So, as much as possible, the tax system should be neutral between debt and equity, and between housing and other investments.