7 Comments
User's avatar
JJ Drinkwater's avatar

Well said, Dave!

Expand full comment
Dave Conant - MO's avatar

Thanks JJ.

Expand full comment
Jon Margolis's avatar

As a former tax lawyer, I think double-taxation of dividends is just fine. I do like your idea that corporations not be permitted to deduct the interest on loans where the proceeds are used for purposes other than financing the company's operations--at least, that is what I take you to mean.

Expand full comment
Dave Conant - MO's avatar

I'm generally unhappy with double taxation of anything Jon but that's a negotiable point. We're in agreement on the deductibility of interest, financing business operations being comparable to mortgage financing in the private market. Defining "business operations" can, however, be a challenge worthy of any attorney.

Expand full comment
Jon Margolis's avatar

Might be easier to define for what purposes loan interest would not be deductible: Anything intended to affect stock price, to pay bonuses to executives (but not the rank-and-file), and stuff like that.

Expand full comment
Bill Alstrom (MA/Maine/MA)'s avatar

Yes, yes and yes!

Expand full comment
Dave Conant - MO's avatar

Thanks Bill.

Expand full comment