Sentence examples for encouraging leverage from inspiring English sources

But in banking we limit leverage (debt relative to equity) through regulation while encouraging leverage through the tax code.

Encouraging leverage seems like a good idea.

But throughout history, loose monetary conditions have fuelled the cycle: cheap money encourages leverage which boosts asset prices, which in turn encourage further leverage.

"The concessional rate of taxation of capital gains might encourage leverage speculation, particularly in combination with negative gearing provisions".

As economist Douglas Holtz-Eakin points out, the tax code is rife with provisions that encourage leverage and discourage investment.

With rapidly increasing debt levels in Australia, policies such as negative gearing and capital gains concessions, which encourage leverage and excessive debt, should be curtailed.

It also warns: "The concessional rate of taxation of capital gains might encourage leverage speculation, particularly in combination with negative gearing provisions".

And the tax structure encourages leverage because interest payments can be set against profits, sharply reducing a firm's liability for corporation tax.

The real lesson here is that extended periods of low interest rates (including periods of negative real interest rates) encourage leverage and asset speculation, and this time it was housing.

"The U.S. tax system encourages household leverage and bank leverage, even though both are potentially destabilizing," is the way Narayana Kocherlakota, the president of the Federal Reserve Bank of Minneapolis, put it in a recent speech.

Corporate finance everywhere is skewed by the tax deductibility of interest, which encourages excessive leverage.