More than three dozen large companies, including several manufacturers, have urged congressional leaders to drop a new proposed limitation on the amount of interest businesses can deduct, according to The Wall Street Journal (subscription).
The basics: The proposal is included as a revenue raiser in the reconciliation bill under consideration by the U.S. House of Representatives.
Who’s involved: Companies including Anheuser-Busch, Corning, Johnson & Johnson and UPS called the new interest limitation “debilitating” and said the proposal would slow down U.S job creation.
What we’re doing: The NAM has been leading the business community in opposing the harmful limitation. In September, we urged Congress to omit interest deductibility changes from the Build Back Better Act, saying, “This additional limitation would further increase the after-tax cost of capital for investments in the United States. It would also push the U.S. well outside of global tax norms for interest deductibility, making the U.S. an outlier and significantly harming America’s competitiveness on the global stage.”
What we’re saying: “Debt financing plays a critical role in enabling manufacturers to fund long-term investments, but this new limitation would make it more expensive for manufacturers to invest in growth,” said NAM Vice President of Tax and Domestic Economic Policy Chris Netram. “Manufacturers would be disproportionately impacted if the proposed limitation were to become law, undermining the economic recovery that the sector has been helping to lead.”