Congress Wants to Give Businesses a $276 Billion Tax Break That CEOs say Doesn’t Spur Investment

Source: Matt Gardner, Citizens for Tax Justice and Institute on Taxation and Economic Policy (ITEP), Tax Justice blog, August 14, 2014

All is quiet in the streets of the nation’s capital as members of Congress have fled to their home districts for their annual August recess. But as is the case every August in recent years, our elected officials left a lot of unfinished business. Among this incomplete work is the future of “bonus depreciation,” which is as contradictory as it sounds. This huge tax break allows companies to accelerate tax write offs for equipment and other infrastructure investment. First enacted to address the recession during the George W. Bush administration, it has been repeatedly re-enacted, expanded during the most recent economic collapse and finally expired at the end of 2013.
Bonus Depreciation: Economic and Budgetary Issues
Jane G. Gravelle, Congressional Research Service, CRS Report, R43432, July 7, 2014

U.S. Corporate Capital Expenditures: Consciously Uncoupled from Federal Tax Incentives

Source: Bloomberg BNA, August 2014