An interesting side effect of eliminating the personal interest deduction is the disappearance of usury controls. Consumer interest was capped at about 21% before this change and that was considered outrageous. The sky is the limit anymore and penalty rates of up to 40% are imposed on consumers who pay even a few days late. Credit cards are issued to marginal credit risks at rates exceeding 30%.
You can say they are paying the piper for having bad credit but the credit card companies are making gangster profits and a cottage industry of settlement and rate reduction has emerged. All they do is tell the credit card company the consumer may file bankruptcy and they fall all over themselves cutting the rate to zero and accepting up to a 5 year payoff. They wouldn't do that if rates were fair and they didn't fear government intervention for their usury. I would have no problem with the high penalty interest rates if the card companies were applying higher credit standards.
You can't apply liaise fair indiscriminately, we learned that a hundred years ago
Current Events » in reply to I have my own problems with Cain's specifics.
Re: I have my own problems with Cain's specifics.
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- Cain would benefit greatly from his 9-9-9 plan
- Interesting.
- I look at tax laws from a civil rights perspective.
- Re: Cain would benefit greatly from his 9-9-9 plan
- He scares me too Eri
- Note that his system taxes capital gains, just as normal income.