Search
 
Analysis

Tax Bill Could Be Toxic for More Junk-Rated Companies

Senate uses a different method for capping deduction on interest payments.

By Molly Smith and Dan Wilchins, Bloomberg | Updated on November 30, 2017

When U.S. Senate lawmakers changed just two letters used for a calculation in their proposed tax bill, they may have increased the number of junk-rated companies that would be hurt by tax overhaul.

Legislators in both the House and Senate are looking to cap a commonly used corporate deduction to help limit the cost to taxpayers of the tax cuts they plan. Under current rules, companies can deduct 100% of their interest payments from their taxable earnings, while under new proposals, borrowers would only be able to deduct interest equal to less than 30% of a measure of their income.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

Recommended Stories

New Jersey’s New ‘Convenience of the Employer Rule’

New Jersey’s New ‘Convenience of the Employer Rule’

Jason Feingertz, Katherine Gallagher & Zach Roop |

The rule is New Jersey’s answer to the question of how to properly source the income of an employee who works at home in one state, for an employer in another state.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.