Companies consider tax implications when making investment decisions in order to maximize value. Higher corporate taxes reduce after-tax profits available for investment. As a result, firms cut investments when taxes increase. There are differing views on the relationship between taxes and investment. One view is that using debt financing for investments can provide multiple benefits, including reduced corporate taxes since interest payments lower taxable profits. Managing investments carefully when using borrowed funds can also maximize shareholder value. Taxation strategies influence corporate decisions around investment and financing.