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Ruud de Mooij
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To Owe or Be Owned -- Depends on How You Tax It

Posted May 13, 2011 | 16:54:01 (EST)

In February, President Obama said, "Companies are taxed heavily for making investments with equity; yet the tax code actually pays companies to invest using leverage." And he is right: the corporate tax code in the United States creates a significant bias toward debt finance over equity.

Of course,...

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