Private Equity firms, along with other capital-heavy sectors such as manufacturing and real estate, are lobbying to reintroduce depreciation and amortization (DA) into the interest deductibility formula for corporate taxes, a shift that could greatly reduce their tax liabilities. However, there are concerns that this move, which could boost the US deficit by $179 billion over the next decade, primarily benefits already profitable firms and may increase systemic risk by encouraging more corporate debt.
Private Equity is back in D.C., not for a hostile takeover, but a high-stakes tax tweak that could fatten its bottom line by billions. The $5 trillion PE industry is pushing to revive a seemingly minor accounting detail with major financial consequences:...
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