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View Diary: Want to Reduce the Deficit? Start by Funding the IRS (81 comments)

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  •  For example, depreciation deductions. (1+ / 0-)
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    Link.  They're a real plus for businesses that want to expand.

    Any jackass can kick down a barn, but it takes a good carpenter to build one.--Sam Rayburn

    by Ice Blue on Thu Jan 31, 2013 at 08:49:11 AM PST

    [ Parent ]

    •  I understand the intent of this but... (0+ / 0-)

      Again, we are using tax payer dollers to subsidize business growth.  The entire purchase cost is deducted from their initial purchase in the cost of doing business and then we allow them to deduct the wear on the asset as well.

      If a company wants a machine, there must be a financial incentive to have it already.  The are going to increase capacity, reduce labor, improve quality, provide a new feature or something.  If it makes economic sense, they will do it.  The depreciation of the asset is an added bonus.  

      It does create an incentive to buy something new as opposed to refurbishing something old but that is like robbing Peter to pay Paul.  Anymore, service contracts are typically local with American workers and new equipment purchases are more likely supporting foreign employment.

      "Perhaps the sentiments contained in the following pages, are not YET sufficiently fashionable to procure them general favour..."

      by Buckeye Nut Schell on Thu Jan 31, 2013 at 09:03:26 AM PST

      [ Parent ]

      •  If an item can be fully expensed for tax (0+ / 0-)

        purposes there no longer is any basis with which one can take further depreciation. Not sure what you are saying about deducting both the upfront cost o the capital item in addition to ongoing deductions.

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