U.S. Corporate Debt Seen Hurt by Baucus Repeal of Tax Law
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U.S. companies could encounter higher borrowing costs under a congressional tax plan that would reverse a 29-year-old policy making it easier for other countries’ residents to invest in U.S. corporate debt.
Senate Finance Committee Chairman Max Baucus has proposed ending what’s known as the portfolio interest exemption. If the change were enacted, some non-U.S. investors would have to pay withholding taxes of as much as 30 percent when they receive interest from U.S. corporations.