Cloyd, C. Bryan; Limberg, Stephen T.; Robinson, John R. - In: National Tax Journal 50 (1997) 2, pp. 261-77
Asserts that the income tax encourages the use of debt because of the deductibility of interest expense. Examines this conjecture by analyzing the interest incurred by a large sample if small, closely held corporations. Estimates regression of the level of interest on proxies for expected future...
