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IWETHEY Home / IWETHEY Board / Money, Financials, and Economics Forum / I see Box doesn't understand how to read
Post #327,458
by drook
Picture of drook
6/6/10 12:26:00 PM
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New I see Box doesn't understand how to read
It was intended so that companies could borrow money to build a plant, to buy new equipment. It wasn't intended so you could borrow money to finance a takeover. If you eliminated interest tax deductibility just for corporate takeovers, which would really only impact the private equity firms, you would do a lot to make LBOs unprofitable.
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Drew
Post #327,463
by boxley
6/6/10 1:22:22 PM
Reply
New box reads just fine
so language is inserted that LBO companies borrowing money cant deduct the interest. Honest yer honor it wasnt to leverage a buyout we needed to borrow that money anyway. It would be easily weaseled. All interest must be declared non deductable to ensure that LBO is used as an excuse and the legit needs of the companies would be offset with accelerated depreciation and opcost expansion of deductions.
     The danger of private equity firms... - (malraux) - (5) - June 6, 2010, 11:22:26 AM EDT
         I see Kosman doesnt understand tax loopholes - (boxley) - (2) - June 6, 2010, 11:48:15 AM EDT
             I see Box doesn't understand how to read - (drook) - (1) - June 6, 2010, 12:26:00 PM EDT
                 box reads just fine - (boxley) - June 6, 2010, 01:22:22 PM EDT
         Thanks. "A rolling loan gathers no loss." - (Another Scott) - (1) - June 6, 2010, 02:06:04 PM EDT
             hide the losses to protect bank balance sheets how japanese -NT - (boxley) - June 6, 2010, 06:13:23 PM EDT

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