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Trump ‘Preference’ for Interest Deduction May Snarl GOP Tax Plan

  • House leaders want to swap deduction for immediate expensing
  • Economists question White House’s economic growth targets
Bloomberg business news

Mnuchin Says Tax Cut Will Be 'Massive' for Businesses

President Donald Trump is leaning toward preserving a trillion-dollar tax break for corporate borrowers -- a move that economists say could jeopardize his goal of robust economic growth.

The administration’s “preference” is to keep so-called interest deductibility, which allows companies to subtract interest payments from taxable income, Treasury Secretary Steven Mnuchin told The Economist in a joint interview with Trump. Their remarks, published Thursday, reveal a new fissure between Trump’s vision for tax policy and that offered by House Speaker Paul Ryan.