FT: Congress Weighs Corporate Debt Tax Reform
According to an article that appeared in the Financial Times, U.S. lawmakers are considering limiting the tax deductibility of interest payments for businesses, a measure that would dramatically transform corporate finance in the U.S. by reducing the bias towards debt in the tax code.
The Times said a move to limit the business interest deduction could be hugely disruptive in that it would target a cornerstone of U.S. corporate finance and potentially shake the corporate bond markets.
The Times noted both the House and the Senate are intensifying their work on overhauling the U.S. tax code, with the hope of producing compromise legislation in the next year or so.
To read the Financial Times article click here.