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Perfect storm for some companies: Fewer interest deductions, rising rates

6 min read . Updated: 06 Feb 2023, 06:16 PM IST Mark Maurer, The Wall Street Journal

One purpose of the interest-deduction change was to raise money to offset the cut in the overall corporate tax rate to 21% from 35%. (Photo: AP) — One purpose of the interest-deduction change was to raise money to offset the cut in the overall corporate tax rate to 21% from 35%. **(Photo: AP)**

Businesses affected by a tax-law change are considering scaling back capital investments and other moves to offset higher interest expenses

Some US companies face reduced cash flows and higher tax bills this year as they are hit by a double whammy: Federal Reserve interest-rate hikes and a tax-law change on deducting interest expenses.

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Perfect storm for some companies: Fewer interest deductions, rising rates

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