Debate over a border adjustment tax is consuming Washington, but another, less-discussed proposal in House Speaker Paul Ryan's tax plan stands a better chance of being included in a GOP overhaul bill.

The measure would force companies to include the interest they pay on loans in their taxable income. That could pit financial services firms such as banks and insurers that have been promised relief from the proposal against private equity firms, which rely on leverage and wouldn't get special treatment.

As Ryan struggles to get support within his own party for border adjustments, the interest provision is more likely to be included in a House tax bill, according to Robert Willens, an independent tax and accounting expert. That's because eliminating interest deductions may be politically easier for Congress to support since consumers wouldn't be directly affected, as critics of border adjustability argue, Willens said.

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

  • 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 and

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