Tag Archives: TCJA

How Does Removing the Tax Benefits of Debt Affect Firms? Evidence from the 2017 US Tax Reform

By | August 3, 2021

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 »