ECONOMYNEXT Listed debentures have mushroomed over the last two years after the State made them tax free in an attempt to boost the debt market.
While it has brought results, the move may also undermine the development of an orderly market based on credit fundamentals.
It has also created a tax shelter for the rich, while the state taxes basic foods like potatoes, cereals, milk and canned fish in a bid to force less affluent workers to bow down to the desires of autarkists.
Most state interventions, which favour sections of the citizenry or one type of economic activity against another have unintended consequences. Such interventions often do not even achieve the objective they set out to do.
Tax breaks to start venture capital companies for example gave tax free luxury cars to their founders but little else.
While it has brought results, the move may also undermine the development of an orderly market based on credit fundamentals.
It has also created a tax shelter for the rich, while the state taxes basic foods like potatoes, cereals, milk and canned fish in a bid to force less affluent workers to bow down to the desires of autarkists.
Most state interventions, which favour sections of the citizenry or one type of economic activity against another have unintended consequences. Such interventions often do not even achieve the objective they set out to do.
Tax breaks to start venture capital companies for example gave tax free luxury cars to their founders but little else.
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