With the release of House Ways and Means Committee Chairman Rep. Kevin Brady’s tax reform blueprint coming today, BUILD Coalition spokesman Mac O’Brien issued the following statement:
“We appreciate the efforts undertaken by Chairman Brady in preparing this serious document containing principles for tax reform. While we are disappointed that the Chairman is considering eliminating interest deductibility, we understand that this document serves as a starting point, not an ending point, for tax reform.
“As such, we are hopeful that Chairman Brady ultimately maintains the full deductibility of business interest expenses in subsequent tax reform plans. Interest deductibility allows business owners to grow the size of their firms beyond their equity stakes through debt financing. In fact, four out of five small businesses use debt financing, and 75 percent of newly established businesses use debt financing during the startup phase. Without the full deductibility of interest, much of this potential for growth would go unrealized for businesses of all sizes across the United States.
“With this in mind, the BUILD Coalition will continue to engage members of the House Ways and Means Committee and others on this important tax reform issue. As has been the case with tax reform in the past, we expect this plan to be an evolutionary process. We thank Chairman Brady for moving the process forward, and we remain committed to a tax plan that maintains full interest deductibility.”