May 17,2016

Press Contact:

Aaron Fobes, Julia Lawless (202)224-4515

Hatch to Hold Second Finance Hearing on Corporate Integration

WASHINGTON – Senate Finance Committee Chairman Orrin Hatch (R-Utah) will convene a hearing on Tuesday, May 24, to explore how corporate integration could make the tax code neutral in regards to financing with debt or with equity.  The hearing, titled “Debt versus Equity: Corporate Integration Considerations,” will take place at 10:00 a.m. in Room 215 of the Dirksen Senate Office Building.

“Right now, corporations are incentivized by the tax code to raise capital by taking on debt rather than pursuing equity-based financing.  An overreliance on debt financing can lead to risky behavior, cause deviations from efficient market forces, and reward gamesmanship in structuring business finance,” Hatch said.  “Corporate integration, if done correctly, could reverse the tide and instead reward companies that build value for their shareholders, while also making the tax system better for American businesses to grow and create jobs here at home.  This hearing will give members of the Committee the opportunity to explore how we can work to reduce debt-equity distortions in the tax code as we continue to examine the pros and cons of corporate integration.”

The following witnesses are scheduled to testify:

  • Mr. John Buckley, Former Chief Tax Counsel, Committee on Ways and Mean, United States House of Representatives, Washington, DC
  • Ms. Jody K. Lurie, CFA, Vice President, Corporate Credit Analyst, Fixed Income Strategy and Research, Janney Montgomery Scott LLC, Philadelphia, PA
  • Mr. John McDonald, Partner, Baker & McKenzie LLP, Chicago, IL
  • Mr. Alvin C. Warren, Jr., Ropes & Gray Professor of Law, Harvard Law School, Harvard University, Cambridge, MA

Senate Finance Committee
Hearing on Corporate Integration
215 Dirksen Senate Office Building
Washington, D.C. 20510
Tuesday, May 24, 2016
10:00 a.m.

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