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Full Interest Deductibility Is Essential To A Pro-Growth Tax Code

By | 2017-03-07T19:11:38+00:00 March 7th, 2017|Blog, Issue Briefs|

Border adjustability. Corporate integration. Lower rates. Simplification. As the tax reform debate continues to heat up, it’s easy to lose sight of the real objective amid all the different proposals and priorities. Most would agree we need to create smart, principled tax policy that helps unlock long-term growth in the American economy. While nothing is

Company Executives Identify The Next Big Tax Reform Fight: Interest Deductibility

By | 2017-03-06T21:50:37+00:00 March 6th, 2017|Blog, Issue Briefs, News|

In a study conducted by the BUILD Coalition last week, we analyzed all public company earnings call transcripts since House Republicans released their Tax Reform Blueprint in June of 2016. The goal was to gain insight into how businesses are thinking about the potential impact of tax reform—especially the proposal to eliminate interest deductibility (ID).

Setting The Record Straight: Debt Financing Plays Critical Role In Business Growth And Economic Stability

By | 2017-03-01T17:35:31+00:00 March 1st, 2017|Blog, Issue Briefs, News|

A March 1 POLITICO piece entitled "The Powerful Financial Reform Within The House GOP Tax Plan," incorrectly describes interest deductibility (ID) as a tax provision that makes the economy riskier by encouraging debt financing. This is a simplistic view that mischaracterizes a fundamental feature of our economic system—one that has helped to drive growth in

If Congress Wants The Support Of The Middle Market, It Should Maintain Interest Deductibility

By | 2017-03-01T19:11:13+00:00 February 15th, 2017|Blog, Issue Briefs|

This week, the Association for Corporate Growth (ACG) held its 2017 Middle-Market Public Policy Summit, where lawmakers and business leaders met to discuss the new political landscape and how public policy can promote the growth of the middle market. One important topic that came up was interest deductibility (ID). The middle market covers roughly 200,000

Setting The Record Straight On Interest Deductibility In The Economist

By | 2017-02-03T17:41:08+00:00 February 3rd, 2017|Blog, Issue Briefs, News|

In its February 2 piece entitled "What If Interest Expenses Were No Longer Tax-Deductible?", The Economist incorrectly describes interest deductibility (ID) as a tax break that makes the economy riskier by encouraging debt financing. This is a simplistic view that mischaracterizes a fundamental feature of our economic system—one that has helped to drive growth in the

BUILD STATEMENT ON SENATE FINANCE WORKING GROUP REPORTS

By | 2015-08-26T16:00:15+00:00 July 9th, 2015|Blog, News|

The BUILD Coalition's Sabrina Siddiqui released the following statement in reaction to release of the Senate Finance Committee Tax Reform Working Groups' reports: "The BUILD Coalition supports continued progress to enact tax reform that would boost growth and create jobs.  It is noteworthy the report acknowledges that many ‘economists – and many in the business community – have

Setting The Record Straight: The Economist’s “The Great Distortion” Misses The Mark

By | 2015-06-25T18:17:25+00:00 June 25th, 2015|Blog, Issue Briefs|

Dr. Rebel Cole, Professor of Finance at DePaul University's Driehaus College of Business, has issued the following statement in response to an article in The Economist entitled "The Great Distortion:" The Economist's piece misses the key point that allowing firms to deduct interest payments enables firms to raise capital needed for new investments. Limiting interest

Issue Brief: Why Businesses Use Debt

By | 2015-08-26T16:30:58+00:00 May 16th, 2014|Blog, Issue Briefs|

The following examples are drawn from Dr. Rebel Cole's "Why Businesses Use Debt – And How Businesses Benefit From Debt." Private business Chez José is a small restaurant owned by its proprietor—José Smith. Last week, José learned that he needs a new roof on his building, and that this will cost him $10,000. Unfortunately, José

Primer: The Importance of Interest Deductibility to Businesses and the Economy

By | 2015-08-26T15:53:51+00:00 January 16th, 2014|Blog, Issue Briefs|

View pdf here. The stated goals of tax reform are to boost the U.S. economy, increase investment, create more jobs, and foster innovation. With a cumbersome, outdated, and bloated tax code, reform has the potential to provide a significant boost to the U.S. economy. However, focusing solely on lowering rates may lead to harmful policy outcomes. This primer

Infographic:The Role Of Interest Deductibility In Cash Flow Management This Holiday Season

By | 2014-02-27T18:10:24+00:00 December 19th, 2013|Blog, Infographic|

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

You Asked, We Answered. Six Key Questions On Interest Deductibility

By | 2013-12-20T17:04:53+00:00 December 6th, 2013|Blog, Issue Briefs|

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

BUILD Coalition Statement on Chairman Max Baucus’ Tax Reform Drafts

By | 2014-01-16T03:09:04+00:00 November 21st, 2013|Blog, News|

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

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