The economic stimulus package will likely...

Christina Lewellen
February 13, 2008
THE TALK...

The Talk, Page 2...

Survey Results for 02/13/2008:

The economic stimulus package will likely...

...have no effect on our purchasing plans.

60%

...inspire my company to purchase equipment sooner.

30%

...allow my company tax advantages to purchases we would have made anyway.

10%



Maybe it’s my tendency to be a glass-is-half-full kind of gal, but I think the results of last week’s poll are encouraging. Sixty percent of respondents said that President Bush’s economic stimulus package and its included depreciation tax breaks for businesses will have no effect on capital purchasing plans this year. But that means the remaining 40 percent plan to take advantage of the accelerated depreciation benefit. Ten percent of poll participants said the tax break will be a bonus to a purchase they already planned to make. The most interesting group is the 30 percent that are acting exactly as policy makers are hoping—accelerating the purchasing process to take advantage of the incentive.

One reader makes a good point that the business portion of the stimulus plan might not be, in and of itself, enough to spark a purchase. But if the equipment being considered has the ability to reduce a company’s costs or increase productivity right away, plus come with the depreciation benefit, his company might just take the bait. “The incentive idea is a good one,” he writes. “However, at this time I would look to invest in new equipment that would help my bottom line immediately. I could argue the point to my ownership that between the two ‘incentives,’ it might work to the company’s benefit. It is hard to sell a spend program right now if there isn’t an immediacy to the gain potential.”

Contact Christina Lewellen, senior editor, at clewellen@glass.org.