How Does Removing the Tax Benefits of Debt Affect Firms? Evidence from the 2017 US Tax Reform
Almost all countries around the world have historically allowed businesses to write off interest expenses against taxable income. Critics argue that the tax-favored status of debt has created a corporate debt pileup, thereby exacerbating economic downturns. This argument, which gained more attention after the 2008 global financial crisis, implicitly assumes that the tax incentives haveā¦ Read More »