Imagine two different companies, both make the same gross profit. Company A returns profit to shareholders by issuing a dividend and buying back shares. Company B doesn't have many shareholders, so instead of using raised capital, they have borrowed debt. They return their profit to debt holders in the form of interest payment. Company B actually returns more money overall because these interest payments are tax deductible.

If the economy slows down and gross profit decreases, company A stops its dividend. Company B defaults and declares bankruptcy.

Do we really want to bailout only company B? Tax policy already pushes companies to look more like company B.