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According to her, the Congress enacted section 163(h), in part,
to prohibit an individual from deducting interest on an income
tax liability attributable to his or her trade or business. I
disagree.
First, there is no reason to resort to the legislative
history of section 163(h). A statute speaks for itself, and its
legislative history should be sought to embellish the text only
when the meaning of the words therein are "inescapably
ambiguous". Garcia v. United States, 469 U.S. 70, 76 n.3 (1984);
see also Ex parte Collett, 337 U.S. 55 (1949). The relevant text
of section 163(h) reads:
In the case of a taxpayer other than a corporation, no
deduction shall be allowed under this chapter for
personal interest paid or accrued during the taxable
year.
* * * the term "personal interest" means any interest
* * * other than--
* * * interest paid or accrued on
indebtedness properly allocable to a trade or
business * * * [Sec. 163(h)(1) and (2)(A).]
This text is not ambiguous. Interest paid on a debt that is
properly allocable to a trade or business is not personal
interest under section 163(h). Given the clarity of this text,
the beginning and end of our inquiry should be the statutory
text, and we should apply the plain and common meaning of the
(...continued)
helpful as a handy reference volume it also gives some
guidance. Where the Blue Book's explanation differs
from that in a conference report it may serve to alert
the reader that a technical correction is needed to
reconcile the views. [Emphasis added.]
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