Obama's Tax Break
President Obama's big economic policy speech tomorrow should be interesting. The Journal is calling it "one of his most dramatic gestures to business."
[Obama] will propose that companies be allowed to more quickly write off 100% of their new investment in plants and equipment through 2011...Companies can now deduct new investment expenses, but over a longer period of time—three to 20 years. The proposed change, which would let companies keep more cash now, is meant to give companies who may be hesitant to invest an incentive to expand, acting as a spur to the overall economy.
Also planned is a $100 billion research and development tax credit. USAToday reports that the credit would rise from 14 percent to 17 percent and would become permanent.
The NFIB, which tends to oppose Democrats on pretty much everything, is already dismissing this as window dressing, but these policy announcements seem significant. Other business groups quoted in the Journal's story are giving the proposals faint praise. We should know more tomorrow.