08/20/2014 - PRIOR TO FINANCIAL REPRESSION IN AMERICA

Government Policy was about:

“positively incenting & directing actions”

Government Policy is now about:

“negatively forcing & impeading actions”

READ: Treasury Officials Prepare Options to Address Inversions 08-19-14 WSJ

Treasury Department officials are assembling a list of administrative options for Secretary Jacob Lew to consider for ways to deter or prevent U.S. companies from reorganizing overseas primarily to avoid paying federal taxes

Some Democrats in Congress believe lawmakers should pass a stopgap measure to deter companies from pursuing the deals, while some Republicans have said the only way to stop inversions is through an overhaul of the tax code.

others believe the White House has ample flexibility to step in and have raised different ideas for administrative actions, including

  1. steps to address earnings stripping,
  2. the taxation of interest and
  3. the treatment of debt and equity
THIS IS WHY IT IS CALLED REPRESSIVE

FINANCIAL REPRESSION IS ABOUTREGULATIONS

FORCING BEHAVIOUR

versus

REWARDING BEHAVIOUR

08-19-14-THEMES-Crony_Capitalism-Cartoon-420 08-19-14-THEMES-STATISM-Cartoon-420

Disclaimer: The views or opinions expressed in this blog post may or may not be representative of the views or opinions of the Financial Repression Authority.