Bank Bailouts
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All savings and loan bailout plans to date want to put the burden on the taxpayer. How about a users fee on all borrowers who take a tax deduction for interest payments on their federal tax return?
This would include individuals and businesses. A 5% reduction in the amount of interest allowed as a tax deduction should provide ample funds to replenish both the FSLIC and the FDIC within a few years.
In addition to being a ready source of funds, it would be easy to collect the money. The IRS would do it. All borrowers should pay into the funds because all borrowers benefit when the U.S. has a strong financial base. This might also help deter some borrowing which should help increase our rate of savings.
WM. S. MORTIMER
Laguna Beach
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