President Donald Trump is leaning toward preserving a trillion-dollar tax break for corporate borrowers — a move that economists say could jeopardize his goal of robust economic growth.
The administration's “preference” is to keep so-called interest deductibility, which allows companies to subtract interest payments from taxable income, Treasury Secretary Steven Mnuchin told The Economist in a joint interview with Trump. Their remarks, published Thursday, reveal a new fissure between Trump's vision for tax policy and that offered by House Speaker Paul Ryan.
Ryan has called for eliminating interest deductibility, a move that would raise an estimated $1 trillion over 10 years. Gaining that revenue would help pay for rate cuts and other tax measures that Ryan and other GOP leaders want, including a provision that would allow corporations to immediately write off the cost of their capital spending.
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