‘US lawmakers are considering limiting the tax deductibility of interest payments for businesses, a measure that would dramatically transform corporate finance in America by reducing the bias towards debt in the tax code.
‘Kenny Marchant, a Texas Republican, and Jim McDermott, a Democrat from Washington state, are weighing the benefits and drawbacks of such a move as the leaders of a working group on “debt, equity and capital” in the House of Representatives ways and means committee, the powerful tax-writing panel. “Right now our tax system heavily favours debt over equity and there may be some good reasons to change that. If we did, we would affect how many corporations choose to raise capital and structure themselves,” Mr McDermott told the FT.’
‘US lawmakers are considering limiting the tax deductibility of interest payments for businesses, a measure that would dramatically transform corporate finance in America by reducing the bias towards debt in the tax code.
‘Kenny Marchant, a Texas Republican, and Jim McDermott, a Democrat from Washington state, are weighing the benefits and drawbacks of such a move as the leaders of a working group on “debt, equity and capital” in the House of Representatives ways and means committee, the powerful tax-writing panel. “Right now our tax system heavily favours debt over equity and there may be some good reasons to change that. If we did, we would affect how many corporations choose to raise capital and structure themselves,” Mr McDermott told the FT.’
