Stop The Buyout Tax Breaks For Billionaires
January 20, 2008, 2:48pm
Congress should stop tax deductions to private equity firms that buy companies in order to quickly resell them at a profit, according to a former government economist who founded the Economic Policy Institute.
We should not allow companies who are buying these firms and flipping them to take tax deductions on borrowed money,” Jeff Faux, the author of “The Global Class War,” said in a video interview with Brave New Films. Deductions for those kinds of investments should only be allowed if the goal is “creating jobs and making America more competitive,” he added, arguing that the income should be taxed just like wages.
“Congress is elected by voters; voters need to tell members of Congress that this has to be changed,” Faux said. “Otherwise, America’s economic problems will just get worse.”
The interview is part of Brave New Films’ “War On Greed” campaign, which also asks presidential candidates to “make a pledge, if elected, that you will work to close the buyout industry’s tax loopholes.” The primary target is buyout specialist Henry Kravis.
Other videos in the series are available at the company’s YouTube page.
Categories: 110th Congress, Taxes, Economy
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