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The unspoken political truth about debt

No politician talks about why companies create so much debt—or has a plan to deal with the problem

By Andrew McNally  

A sketch of the Victorian debt activist Richard Mentor Johnson freeing a man from debtors' prison

Leaving aside credit creation, supported by central banks, there is no greater structural bias in favour of debt finance than corporate taxation; for much of the world, there is enormous support for the use of debt in corporations. Interest expenses on debt finance have been tax deductible for US corporations since 1918, when this allowance was introduced as a…

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