Wonkblog: GOP split in battle over business tax breaks

“Right now, companies are required to spread the tax benefit from these long-term investments over time” reports If House Republicans accomplish this change, it would mark a huge shift in tax benefits away from companies that borrow money.It could strip away more than $1 trillion in tax benefits from companies that deduct interest on their debt and give those tax benefits to companies that make large, long-term capital investments.To offset the lost revenue, House Republicans have proposed eliminating or curbing the ability of companies to deduct interest payments on their debt from their taxable income.Peter J. Roskam (R-Ill.) was among those who said that allowing businesses to write off their investments immediately could be critical to helping boost the economy. “It drives half of the growth,” Roskam said in an interview.

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