Let’s return to a proven way to jumpstart the American economy.
Remember when interest on consumer debt was deductible on federal and state income-tax returns?
Those write-offs went down the tubes when the federal tax code was “simplified” by Congress in 1986.
Kept on the books because of political pressures were the deductions for mortgage interest, other income and property taxes and some costs for healthcare.
Also untouched, of course, were write-offs for the cost of doing business—though multiple-martini business meals took a deserved hit.
Not only would deductions for consumer-debt interest and sales taxes benefit taxpayers in April, but would be incentives to purchase more products throughout the year.
More purchases would translate into stable employment and increased tax revenues from higher individual and corporate incomes.
Past trickle-down giveaways to corporations turned into political tricks benefiting only stockholders and other investors. (11 NOVEMBER 2001)
