Accelerated Depreciation Revisited - A Reply to Professor Blum

Abstract:     
Professor Blum's comment addresses the proper or neutral tax treatment to be accorded three of the items discussed in my recent article on accelerated depreciation(Kahn, Accelerated Depreciation: A Proper Allowance for Measuring Net Income?) - namely, annuities, prepaid expenses, and exhaustible assets. Blum disputes my analysis in all three cases. While Blum's article is eminently readable, I do not believe that it refutes my earlier work to any extent. In this reply to Professor Blum, I will deal separately with each of the three items he examines.

Number of Pages in PDF File: 8

Keywords: Taxation, Depreciation, Neutrality, Expenditure

JEL Classification: H20

Accepted Paper Series