With today’s House Ways and Means Tax Policy Subcommittee hearing on tax proposals focusing on cash-flow and consumption-based approaches to taxation, BUILD Coalition spokesman Mac O’Brien released the following statement:
“The BUILD Coalition supports legislative efforts to revamp the U.S. tax code so as to promote economic growth and investment. However, in order to achieve this goal of fostering growth, any such tax reform efforts must maintain the business tax deduction for interest expenses. Businesses of all sizes use debt to finance investments, manage day-to-day expenses, and grow operations. The interest paid on this debt is a normal cost of doing business and has been treated as such since the creation of the modern tax code.
“Tax proposals eliminating interest deductibility will harm some of the most important job creators in the U.S. economy, including the four out of five small businesses that use some form of debt in their capital structure. Eliminating this interest deduction in favor of 100 percent expensing only further complicates the tax code, creating an anti-growth environment for businesses both large and small.
“Interest deductibility is a core component of the tax code and should be preserved in full to help businesses of all sectors grow throughout the country.”