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This is simplistic. What if there was a loophole in the law that allowed one to not repay debt. Bankers will get that loophole fixed asap. In this case saying
by throw2016 8y ago
This is simplistic. What if there was a loophole in the law that allowed one to not repay debt. Bankers will get that loophole fixed asap.
In this case saying its 'legal' misses all the processes, politics, lobbying, accounting firms drafting laws, ideology, tax havens, that are all in play to leave little 'loopholes' like this for selective enrichment.
Google and other corporate interests who benefit from these 'loopholes' saying 'this is legal' is understandable, but why should an individual say this?
How about employees allowed to sell their services to a third parties incorporated in low tax regions competing for their membership, which in turn then license it to employers, leading to reduced tax in their home countries? Why is this not a thing? If everyone did that the whole tax base would dissipate and destroy our current system, hence its now allowed, why is the exact same thing ok for corporations?
- jmalicki 8y ago> What if there was a loophole in the law that allowed one to not repay debt. Bankers will get that loophole fixed asap. Uh, no. It's called bankruptcy. One view is that bankruptcy laws in the US created a powerful bankruptcy bar whose special interest in enriching themselves through consumer-friendly bankruptcy laws became more powerful and focused than the special interest of banks. https://legacy.voteview.com/pdf/Berglof_Rosenthal_Bankruptcy.pdf https://legacy.voteview.com/pdf/Berglof_Rosenthal_Bankruptcy...
- throw2016 8y agoA bankruptcy is not a 'loophole' or benefit you can avail as a matter of course every year, but this misses the point. That was just an example, it could be anything, any 'financial innovation' not available to individuals.
- manigandham 8y agoSeems like a failure of politics. Which is what I said.