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This would include introducing an allowance for corporate equity to counter the current corporation tax system that treats debt interest payments as a deductible expense.
The net amount of corporate equity issued in America has been shrinking for a decade.
New options add to the overhang of allocated but unclaimed corporate equity, something that shareholders dislike.
"But I was a corporate equity derivatives marketer and believe me, no one wants to read about that".
Jason Furman, of the National Economic Council, has estimated that tax breaks make corporate debt as much as forty-two per cent cheaper than corporate equity.
The Treasury pledged to conduct a review on so-called allowance for corporate equity by the time of next year's budget.
Similar(34)
SAVING When the tax system depresses the return on a major asset class like corporate equities, households have less incentive to save for the future.
And as major owners of corporate equities, they stand to gain from the profit-repatriation scheme, the proceeds of which are likely to be largely used for stock buybacks and other financial-engineering schemes.
Mr. Russert noted that the Clinton-Gore budget for 2000 had proposed increasing the money for Social Security by investing some of the budget surplus set aside for Social Security "in corporate equities or other private financial instruments".
Publicly traded corporate equities are worth $13 trillion; GDP is $14 trillion; so the ratio is only 0.9.
Japan's troubled life insurance companies, too, are big holders of corporate equities and are beginning to press for better returns.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com