Can you explain to me why it is difficult to fix corruption?
Honestly? This economics article is a great read, but it read like everyone has become corrupted by tax deductions. But, can’t we just roll all that bad stuff back?
I’ve been reading a lot of economic commentary and analysis around two things lately: (1) is, naturally, the negotiations surrounding the “fiscal cliff,” and (2) is Prof. Anas Admati’s argument that the best financial reform we could undertake would be to require banks to have a higher equity ratio (that is, to finance more of their assets through stock and less through debt, reducing their leverage). I hope to write at greater length about (2) in the future, but, for now, suffice it to say that both of these things center on the “debt bias” in the U.S. tax-code, a bias which piqued my interest and so which, after a little research, I should like to tell you about.
Let me start out with some econ for poets. Suppose you’re a business and you want to make a big expansion–setting up lots of new stores, opening a new R&D facility…
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