What is the term used to refer to the ability of the firm to deduct interest payments to reduce its tax liability?

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The term used to refer to the ability of the firm to deduct interest payments to reduce its tax liability is the "interest tax shield". This means that a company can reduce its taxable income by deducting interest expenses from its revenue before calculating the taxes owed. This results in a lower tax liability for the company, which is known as the interest tax shield.

What Is the Term Used to Refer to the Ability