Assignment task:
The 2018 US Tax Cuts Act has reduced the corporate tax rate from 35% to 21%. However, it has also introduced a limit on the amount of interest expenses that companies can deduct. In 2017, The Economist wrote about the potential impact of this major tax reform.
"The effect on the corporate world would not be uniform. Some companies have a lot more debt, and thus a lot more to lose, than others." (The Economist, "What if interest expenses were no longer tax deductible?" 2nd February 2017).
Comment on the following quote, explaining why some companies will be affected more than others. Give at least two examples of types of companies, which will be affected the most and the least.