GOP Tax Writer Wants Business Interest Deduction Break: BGOV Tax

Estes Leads on Business Interest Deduction

Rep. Ron Estes (R-Kan.) is leading legislation that would give American companies facing higher after-tax capital costs a break when calculating interest deductibility.

The legislation would repeal the adjusted taxable income limitation that excludes some global income of US companies, which lawmakers said disadvantages some firms competing in global markets for leveraged acquisitions.

“As it currently stands, our tax code is penalizing American businesses for growing,” said Estes, who sits on the tax-writing House Ways and Means Committee. “When a manufacturer borrows money in the United States to expand their global business, they shouldn’t ...