Baucus: Rethink Depreciation Rules

Congress should consider changing ‘generous’ tax breaks for capital investments.

Congress should consider changing “generous” depreciation rules for corporate capital investment, Senate Finance Committee Chairman Max Baucus said.

Tax breaks for capital investment, including accelerated depreciation, are among the most expensive targeted provisions in the tax code. That makes them a target as lawmakers consider ways to reduce the corporate tax rate without increasing the budget deficit. Companies can deduct many capital expenses for tax purposes faster than they can on their financial statements.

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments

Advertisement. Closing in 15 seconds.