THE ACCELERATOR for June 16th, 2017
News for Driving Economic Growth
A 2007 Treasury study and a 2011 paper by economists on the staff of the Joint Committee on Taxation both reached the conclusion that enhancements in capital cost recovery would be more effective in stimulating economic growth than other forms of tax reform.
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TAX FOUNDATION: TEMPORARY RATE CUT INEFFECTIVE AS ECONOMIC STIMULUS
In a piece advocating for a permanent corporate tax cut over a temporary one, Alan Cole of the Tax Foundation argues that a temporary, ten-year reduction in the corporate tax rate to 15% would boost investment and growth over the first seven years, but reduce growth thereafter. He contends out that the prospect of future restoration of the higher rate would act as a drag on investment.
HERITAGE SAYS FULL EXPENSING #1 PRIORITY IN TAX REFORM
The Heritage Foundation has released a paper urging Congress to adopt full expensing over cutting the corporate tax rate if lawmakers are forced to choose. Salim Furth argues, “[o]ne key reform should remain the centerpiece of any plan that moves forward: making investment expenses tax-deductible.”
THE ACCELERATOR is the voice of the CRANE Coalition – Cost Recovery Advances the Nation’s Economy. CRANE is made up of American companies and associations focused on preserving a robust system of cost recovery in the tax code to ensure that businesses have the capital needed to continue driving economic growth and job creation here at home. CRANE has sponsored research on the economics and budgetary aspects of cutbacks in cost recovery. As Congress and the administration endeavor to reform the U.S. tax code in the coming months, CRANE will continue to urge the preservation and enhancement of accelerated depreciation. Follow us on Twitter.