BUILD Coalition Emphasizes Need To Preserve Full Interest Deductibility In Letter To Senate Finance Committee

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WASHINGTON (July 6, 2017) – Today, the BUILD Coalition submitted a letter to the Senate Finance Committee outlining the need to preserve full interest deductibility for American businesses. The submission highlights how businesses of all sizes and across all sectors rely on the ability to deduct interest expense to access capital that is critical for..

Responding To Claims Against The Tax Treatment Of Debt Financing

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A recent American Action Forum piece advocates for eliminating interest deductibility, citing the differing tax treatment of debt and equity financing as the impetus for such a policy change. The authors argue that interest deductibility results in a “subsidy” for debt-financed investment when compared to equity-financed investment. However, this approach fails to account for the non-tax reasons..