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Overview: For this assignment you will read an article and write a short paper.
Prompt: Read House Tax Plan May Shift Use of Corporate Debt and write a short paper about how the changes in presidential and congressional leadership cause changes to the tax code. Do you agree or disagree with the changes to the deductibility of interest and changes in expenditures of capital assets? How do you think this will affect certain industries that borrow quite a bit, such as banks and financial institutions? Reference the current tax code sections that will be affected by these potential changes.
In your paper, address these critical elements:
- Identify sources for evaluating the appropriate tax situation.
- Document research performed to determine which code sections will be affected by the tax changes.
- Apply research to deductibility of corporate tax debt and argue whether you agree or disagree with the changes.
- Document findings and analyze the effects on industries that borrow significant amounts of money.