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Donald Trump’s proposed tax initiatives could help debt-laden businesses and real estate firms, but the controversial plan has received a lot of opposition.
The GOP presidential candidate's tax plan consists of a combination of two policies that would allow businesses a series of perks—such as deducting interest and expensing or immediately writing off investments in equipment and buildings. At present, companies are required to spread those deductions out over a series of years.
Trump’s plans are not well-received by House Republicans and tax analysts from both parties who say the two policies should not be combined. The initiatives could potentially generate big losses in the first year of an investment, and by allowing ongoing interest deductions, those losses would carry into the future, Wall Street Journal reports.
Former aide to President Obama and NYU professor Lily Batchelder told the Journal the combination of the two policies would be insane. “That’s like the closest I can think to a bipartisan sin among tax nerds,” she said. [WSJ]
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