Category: General

  • SETTING THE RECORD STRAIGHT: THE ECONOMIST’S “THE GREAT DISTORTION” MISSES THE MARK

    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 deductibility, even…

  • IMPORTANCE OF INTEREST DEDUCTIBILITY HIGHLIGHTED IN KEY TAX PUBLICATION

    In the most recent edition of Tax Notes, Dr. Rebel Cole, Professor of Finance at DePaul University, argued, “As we continue to lay the groundwork for tax reform, understanding the need for maintaining full interest deductibility is essential to the creation of a simpler, fairer, growth-inspiring tax code.” The full article, entitled “Keep Business Interest Deduction, Finance…

  • ISSUE BRIEF: INTEREST DEDUCTIBILITY HELPS LARGE AND SMALL BUSINESSES

    Interest deductibility is a component of the tax code that has helped businesses of all sizes use debt to finance investments. Typically, we think of large companies using debt. This is certainly true especially amongst firms with large capital-intensive investment needs. Businesses in the manufacturing, transportation, and construction industries have large capital needs and therefore,…

  • BUILD STATEMENT ON TRUMP TAX REFORM PROPOSAL

    With the release of Presidential candidate Donald Trump’s tax reform proposal, the BUILD Coalition has issued the following statement: “We are disappointed to see that Mr. Trump’s tax plan calls for a cap on interest deductibility, a proven growth-inspiring provision that is a fixture of the modern tax code,” said BUILD spokeswoman Sabrina Siddiqui. “Plans that…

  • BUILD STATEMENT ON REP. NUNES’ TAX REFORM PROPOSAL

    With Rep. Devin Nunes unveiling his business tax reform proposal today, the BUILD Coalition released the following statement: “While the BUILD Coalition remains supportive of legislative efforts to reform the U.S. tax code in ways that encourage economic growth, Rep. Nunes’ plan falls short of achieving this most-important goal by eliminating the ability to deduct…

  • BUILD Coalition Statement On Tax Day

    On tax day, BUILD Coalition spokesperson Russ Grote released the following statement: “Today, American businesses are yet again finishing a complex and burdensome process to pay their taxes. As policymakers continue to debate the future of our tax code, the BUILD Coalition reiterates its continued support for the goals of tax reform. Reform has the…

  • BUILD STATEMENT ON TAX POLICY CENTER’S REVIEW OF SEN. RUBIO’S TAX PLAN

    Yesterday, the Tax Policy Center released its review of Sen. Rubio’s tax plan. In response, BUILD Coalition spokesman Mac O’Brien issued the following statement: “The Tax Policy Center has joined a growing list of tax experts who are alarmed by presidential candidates’ proposals to remove the ability for businesses to deduct interest expenses. “In explaining…

  • BUILD STATEMENT ON HOUSE WAYS AND MEANS HEARING ON FUNDAMENTAL TAX REFORM PROPOSALS

    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…

  • WHY BUSINESSES USE DEBT AND HOW DEBT BENEFITS BUSINESSES – REPORT

    In “Why Businesses Use Debt And How Debt Benefits Businesses,” Dr. Rebel Cole, Professor of Finance at DePaul University, argues that “debt enables a company to grow and expand its operations to increase production in a growing market.” He provides an overview of the reasons why a business uses debt to finance a portion of…

  • Issue Brief: Why Businesses Use Debt

    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…