One proposal for tax reform is the immediate expensing of capital expenditures, under the premise that it will spur growth through investment. Will this be coupled with an inability to deduct interest expense, or will it lose out altogether to the desire for as low a corporate tax rate as possible? Or, is there some middle ground that extends or makes permanent bonus depreciation?
Congressional tax writers want to offer U.S. companies an “unprecedented” way to slash their tax bills by investing in new equipment. But firms that stand to benefit most are saying no thanks, just give every company a bigger rate cut.