Corporate Interest Deduction Proves Sacred Amid Reformers: Taxes
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A newly formed coalition of businesses is stepping up efforts to protect interest deductions as tax reform advances in Congress.
Interest on debt has been fully deductible for 100 years -- encouraging factory expansions and hiring for new initiatives, and fueling a spate of private equity takeovers. The deductions totaled more than $8.5 trillion in a decade by one estimate. As part of tax reform and discussions about the U.S. debt, both Democratic and Republican lawmakers are calling for limits.