Tax Bill Delivers Hit to Debt-Heavy Firms

The new tax legislation will limit a company’s ability to write off interest paid on debt, and that could hurt more leveraged firms–this according to a recent article in The Wall Street Journal. The article states, “Full deductibility of interest has long made borrowing more attractive for companies when they needed money, instead of raising capital through selling equity,” and adds that the new tax law will limit deductible interest payments to 30 percent of… Read More