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Originally Posted by satz  There have been a number of threads here in the recent past decrying the evils of debt, and I think we would all agree that the bible certainly presents debt as an undesirable thing.
However, if my understanding is correct, under our modern western tax regimes the interest payments on debt are tax deductible, so that sometimes it is actually beneficial for a person to have some debt as opposed to none.
Now this sort of financing is normally associated with large corporations, but from what I understand, individuals can use it as well, particularly when purchasing property.
Firstly, do these arrangements really provide the overall benefit they are supposed to?
Secondly, how should we look at them in light of the bible's teaching about debt?
p.s just for completeness, I do not believe the bible condemns all debt as sinful. |
I'm avoiding the question of whether debt is biblical. There is a diversity of opinion on that. Calvin thought it was fine in some cases, especially business, other reformers thought it was never fine.
But I think it is important to realize what is behind the idea of tax deductions. It is an overt form of social engineering. Tax law (court decisions and commentary) considers deductions to come from "the grace of Congress." That phrase is literally used. This, of course, very obviously raises Congress to the level of a king or even of a god. Only a sovereign entity can distribute grace.
So quite clearly, the so-called sovereign has decided to encourage the use of debt. Economists who have their eyes open acknowledge that debt is the primary means of "creating" money.
So the social engineers not only dispense grace, they "create" (more or less
ex nihilo) something they ought not--that is, the measure of wealth. It is rebellion at a basic level.