With the release of the “Big Six” tax principles today, BUILD Coalition spokesman Mac O’Brien issued the following statement:
“The BUILD Coalition opposes the proposal from the ‘Big Six’ to limit interest deductibility as part of tax reform. This action would effectively create a new tax on business investment, which runs counter to pro-growth tax reform. Businesses of all sizes and across all sectors of the economy—from agriculture, to manufacturing, to telecommunications and broadband—rely on this fundamental feature of the tax code. Interest expense is a normal cost of doing business, so its deduction is essential to how we measure net income. Altering that would make it more difficult for American companies to compete in the global economy and harm job creation and long-term economic growth.
“Fortunately, the discussion on tax reform is far from over. As Congress turns to drafting legislation in the coming months, we hope policymakers listen to constituents in their districts and states who depend on interest deductibility to grow their businesses and create jobs. We will continue engaging with the administration and Congress as we educate stakeholders on full interest deductibility and its role as a necessary ingredient for future job creation and economic growth.”