Yes, for the reason you describe, it would also apply to businesses. It would likely help smooth out some of the market excesses and temper some of the irration

Yes, for the reason you describe, it would also apply to businesses. It would likely help smooth out some of the market excesses and temper some of the irrational exuberance known to occur. A lot of “investment” is done by zombie companies buying their own stock or floating from one low interest loan to another to fund operations while deducting interest expenses along the way. Yes, there could be a hit to overall investment, and it could be argued to set a lower bound of allowing deductions for up to 50% of interest paid or something.