On Thursday, July 11, the House considered and approved H.R. 4718, to amend the Internal Revenue Code of 1986 to “modify and make permanent bonus depreciation.” Bonus depreciation was implemented as a temporary measure to stimulate the economy during the recent economic crisis. It allows businesses to deduct 50% of the cost of certain equipment purchases right away instead of requiring the deduction over a longer period of time. This legislation increases the deficit.
Here is the Obama Administration’s view:
The Administration strongly opposes House passage of H.R. 4718, which would permanently extend “bonus depreciation” rules that allow corporations to speed up deductions for certain investments and thereby delay tax payments. This provision was enacted in 2009 to provide short-term stimulus to the economy, and it was never intended to be a permanent corporate giveaway. Moreover, H.R. 4718 includes no offsets and would add $287 billion to the deficit over the next 10 years, wiping out more than one third of the deficit reduction achieved by the American Taxpayer Relief Act of 2013.
Rep. Reed opposes extending unemployment benefits because they were intended to be temporary, he says. But in other cases, he has had no trouble extending temporary measures or making them permanent.
- Extending “Bush Tax Cuts” for the rich and super rich.
- H.R. 4619 To permanently extending the food inventory donation tax provision.
- H.R. 4717 To amend the internal revenue code of 1986 to make permanent and expand the temporary minimum credit rate for the low-income housing tax credit program.
Also, Tom cosponsored and voted Aye on HR 4718 to extend the temporary bonus depreciation tax break for business. Tom says reducing the deficit is a priority. Tom sometimes says extending temporary measures is wrong, but he fails to mention these concerns when they conflict with giving business tax breaks.
© William Hungerford – July 2014