\ a 7 “ . \ ‘ | 2 Le BA eter omg Le Tax Set cs — «Mie } <— ee — a ' 3 = = — " iz a x i r - ~~ ~ S _ ; “There is a big gulf between our two views... We believe The purpose for denying deductions for net interest that we should have a pure territorial system...And so | do expense is to prevent a presumed double benefit from believe that this issue is coming,” Ryan said. “| don’t think fully expensing leveraged purchases of property. you can stand against aterritorialsystem much longer.” . . ji : However, the exclusion of land from full expensing under Ryan also remarked that “the experience | had when | was : : the Blueprint would be particularly severe for debt- Ways and Meanschair with [Democrats] was not a . , ; , . » financed purchases of land because the land would not be pleasant one, and | don’t know if that’s going to change. a . eligible for full expensing (or apparently even In a September 8 New York Times op-ed, Senator Warren depreciation as under current law), while deductions for said foreign developments are increasing pressure on interest expense on the debt would not be permitted. Congress to cut corporations “a new sweetheart deal” in . . ; Moreover, the persistent issues under current law tax reform, but lawmakers should instead take the . . . . opportunity to collect more revenue from corporations involving the allocation of purchase price between non- ; deductible land and immediately deductible “Preferential tax treatment, either through special rates improvements on the land would be intensified under the or deferred due dates, creates a huge financial incentive Blueprint. Other aspects of paying for a reduced for American companies to build businesses and create corporate rate will not come easier in the new Congress. jobs abroad rather than in the United States. Our tax code The allure of reducing businesstax rates did not draw should favor jobs and businesses at home — period,” members to support the bill presented to them by former Warren sa