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Why Debt Won’t Go Away… Even Under Proposed Tax Changes

Tax changes under Trump could lead to reduced tax deductibility on debt but Deutsche Bank believes it may have limited impact.

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Treasury Management

Why Debt Won’t Go Away...Even Under Proposed Tax Changes

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May 03, 2017

Tax changes under President Trump could lead to reduced tax deductibility on debt but Deutsche Bank believes it may only have a limited long-term impact on how most companies use debt in their capital structure.

The Trump Administration and Congress have been discussing tax reform that promotes the benefits of a lower marginal corporate tax rate—particularly in motivating companies to not only stay in the US but to also increase investments and employment.

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