Why might such a proposal be desirable

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Reference no: EM131431270

There have been proposals to allow firms interest on the losses they carry forward on their tax returns from one year to the next. That is, if a firm has a loss this year of $100,000, and the interest rate is 10 percent, i: can deduct $110,000 from its income next year (assuming that it is positive). Why might such a proposal be desirable? Would it completely resolve the problems that it is intended to address?

Reference no: EM131431270

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