Skip to content
Subscriber Only

Next Big Tax Fight Could Pit Wall Street Against Private Equity

  • Ryan’s tax plan calls for ending interest deductions on loans
  • Banks, insurers and leasing companies promised special relief
American flags fly outside the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Nov. 4, 2016. U.S. stocks fluctuated amid payrolls data that bolstered speculation the economy is strong enough to weather higher interest rates, while investors remained wary before the looming presidential election.
Photographer: Michael Nagle/Bloomberg

Debate over a border-adjustment tax is consuming Washington, but another, less-discussed proposal in House Speaker Paul Ryan’s tax plan stands a better chance of being included in a GOP overhaul bill.

The measure would force companies to include the interest they pay on loans in their taxable income. That could pit financial services firms such as banks and insurers that have been promised relief from the proposal against private equity firms, which rely on leverage and wouldn’t get special treatment.