The Problem with Bonus Depreciation
Theodore P. Seto
Loyola Law School Los Angeles
February 12, 2010
Tax Notes, pp. 782-783, February 8, 2010
Loyola-LA Legal Studies Paper No. 2010-5
Bonus depreciation encourages businesses to reallocate funds from labor to capital and thereby depresses the demand for labor. In periods of high unemployment, Congress should avoid enacting such provisions. More generally, when considering proposed tax incentives, Congress should insist on identifying the subsidized activity’s economic substitutes – those sectors or activities as to which the proposed provisions are likely to operate as a penalty.
Number of Pages in PDF File: 3Accepted Paper Series
Date posted: February 16, 2010 ; Last revised: February 19, 2010
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo7 in 0.437 seconds