Adam N. Michel of the Cato Institute writes about pro-growth tax policies.
- Immediate expensing allows a company to deduct the full cost of a new investment in the year that the investment occured, rather than over multiple years through a lengthy depreciation schedule.
- The year after immediate expensing was passed (in the 2017 Tax Cuts and Jobs Act), energy and environmental research and development expenses jumped by $3 billion.
- A deduction in a few years will yield less of a return for a business than a deduction today, due to inflation.
- Pro-growth tax policies can spur economic development and energy innovation.
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