Personal loans against business assets should be taxed. The repayments can then be tax deductible so they are not double taxed. Without taxing these loans, it just creates a tax loophole where you avoid income tax.
As for company prices being inflated, to some extent, who cares? As long as they don’t get a bailuot when the bubble pops, it’s the investors issue.
The tax deductions are meant to offset the tax on the loan. You don’t get your loans taxed as income so you don’t get full deduction on repayment. They wouldn’t pay less than you overall in my proposal.
Personal loans against business assets should be taxed. The repayments can then be tax deductible so they are not double taxed. Without taxing these loans, it just creates a tax loophole where you avoid income tax.
As for company prices being inflated, to some extent, who cares? As long as they don’t get a bailuot when the bubble pops, it’s the investors issue.
We get tax deductions on interest paid on mortgages. They should not be getting tax deductions on their full repayment.
The tax deductions are meant to offset the tax on the loan. You don’t get your loans taxed as income so you don’t get full deduction on repayment. They wouldn’t pay less than you overall in my proposal.