The economic stimulus package will likely...
February 13, 2008
If at first you don’t succeed, try, try again. Yes, folks, I’m talking about the proposed economic stimulus package. The Wall St. Journal, a.k.a. my personal daily vice, says: “The largest business break in the package is called ‘accelerated depreciation,’ which permits companies to take much larger tax deductions on this year’s capital investments, instead of spreading those deductions over several years. Under the proposal, a company would be able to add a larger deduction immediately of at least 50% of the cost of the equipment to a portion of the normal deduction.”
Sounds pretty good, I guess, but the paper also points out that a nearly identical break for businesses about five years ago didn’t really put the fire under businesses to speed up capital purchases. Instead, the companies that benefited from accelerated depreciation were ones that planned to make upgrades anyway.
What do you think—are you inspired enough ignore the slumping market and take advantage of the depreciation option? Write me an email to share your anonymous thoughts.
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