Should interst expense be tax deductible?

Interest expense is tax deductible for corporate tax. But is this something that should be disallowed, say 2015 onwards?

Why? because at present, the tax payers are subsidising a private company because of its choice of funding.

Say company x is 100% equity financed, but company y is only 50%  equity financed. If its in the same business, I don’t see why tax payers should subsidise company y.