See below for BUILD’s latest infographic that details the role of credit in helping seasonal and non-seasonal businesses manage cash flow challenges, such as meeting payroll or paying suppliers on time. Using debt financing to help manage cash flow is a normal business operation. As a cost of doing business, interest on credit has been..
1. What is interest deductibility? Interest deductibility refers to the ability of businesses to deduct the interest paid on debt from their taxable income. This 100-year old component of the tax code allows businesses to deduct interest payments from loans or other forms of debt as a cost of doing business. 2. What kinds of..
Below is a statement from BUILD spokesperson Russ Grote on Chairman Max Baucus’ tax reform drafts. “The BUILD Coalition is glad to see tax reform back in the policy discussion in Washington. As the process continues to move forward, we reiterate our support for maintaining full interest deductibility, which is an ordinary and necessary business..
Businesses use credit to grow, manage payroll, and make job-creating investments. It’s fundamental to business. However, proponents of a new tax targeting interest on debt have often argued that interest deductibility distorts incentives, which might lead to too much credit in the economy. While this new tax will raise costs for businesses onnew investments, correcting..
The Bureau of Labor Statistics reported that Michigan had an unemployment rate of 8.8% in July, fifth highest in the entire country. In these tough economic times, businesses must be able to use debt in order to invest locally, expand their businesses, and create jobs. As explained by Lew Dodak and Rick Johnson, former speakers..
View infographic here. The BUILD Coalition is happy to see momentum behind tax reform continue to grow in Memphis today with Rep. Dave Camp and Sen. Max Baucus’ road show. The U.S. and Memphis metro area need pro-growth reform. In 2011, the Memphis area economy only grew 0.1 percent and, according to most recent data,..
When Congress returns next week, tax reform will once again be a hot topic of discussion. Many agree, just as we do, that pro-growth tax reform is necessary to strengthen the American economy. Many businesses are hoping for reform to help them grow and create jobs, but any talk of limiting interest deductibility as a..
Published in Quora (Click to comment or vote) and Forbes, August 19, 2013 By Matt McDonald, BUILD Treasurer and Partner at Hamilton Place Strategies Tax reform has the capability to give a big boost to businesses and the rest of the economy. The tax code has had 15,000 new rules since the last tax reform in..
Published in The Philadelphia Business Journal, August 2, 2013, Pennsylvania needs real tax reform focused on economic growth By Matt McDonald, Treasurer of the BUILD Coalition See original post here. When considering tax reform, business owners think about simplification — clearing the underbrush that has grown since the last overhaul in 1986. It’s no secret..
Interest Deductibility: A Building Block for Growth from BUILD Coalition on Vimeo. As Congress begins to ramp up its efforts to reform the tax code, it is important that policymakers understand that any call to limit interest deductibility should be a non-starter in the discussion. Watch the video above to learn more about how important..