full expensing Archive

Are Tax Rebates & Tax Holidays the Answer?
January 26, 2023
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TweetShareSharePin0 Shares The rate of inflation has slowed markedly in recent months, even declining slightly in December—but at year’s end, prices were still 14.6 percent higher than they were two years prior. That’s the fastest inflation rate over any two calendar years since the stagflation era of the late 1970s. State policymakers are understandably interested

Bonus Depreciation: Details & Analysis
December 21, 2022
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TweetShareSharePin0 Shares Key Findings Cost recovery refers to how businesses deduct their investments over time. The Tax Cuts and Jobs Act of 2017 reintroduced 100 percent bonus depreciation for short-lived investments, such as machinery and equipment, allowing full cost recovery for qualifying investments. Bonus depreciation will begin phasing down at the beginning of 2023. In

Chile Tax Reform Heads in the Wrong Direction
December 8, 2022
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TweetShareSharePin0 Shares The Tax Foundation recently released the 2022 International Tax Competitiveness Index (ITCI), measuring the complexity and neutrality of countries’ tax systems. Over the years, Chile has consistently remained in the lower half of the Index’s rankings, and in the 2022 version of the Index, Chile fell from 26th to 27th (out of 38

R&D Expensing: Canceling R&D Amortization
December 7, 2022
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TweetShareSharePin0 Shares The tax treatment of research and development (R&D) expenses is one of the biggest issues facing Congress as the year winds down. Since the beginning of 2022, companies have had to spread deductions for R&D costs out over five years, instead of deducting them immediately. This policy, known as R&D amortization, reduces economic

Rishi Sunak UK Tax Plan: Details & Analysis
December 1, 2022
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TweetShareSharePin0 Shares In two months, the United Kingdom has had two new tax plans, two new Prime Ministers (Liz Truss, then Rishi Sunak), and two new Finance Ministers (Kwasi Kwarteng, then Jeremy Hunt). The Truss-Kwarteng tax proposal would have lent modest support to real economic growth, cushioning economic fallout from the Bank of England’s overdue

States Should Make Full Expensing Permanent to Help Curb Inflation
November 29, 2022
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TweetShareSharePin0 Shares Consumers experience the pernicious effects of inflation every time they shop. And, in a vicious cycle, a forthcoming change in the federal tax code means that inflation will drive up the cost of the very business investments that can boost supply and start bending the cost curve down. Through inaction, states will follow

2022 Tax Extenders: Details & Analysis
November 15, 2022
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TweetShareSharePin0 Shares At the end of each year, policymakers face a series of expiring tax provisions that are typically extended on a temporary basis, setting up a recurring and almost ritualistic tax extenders season. At a time of heightened concerns about the economy, high deficits, and inflation, policymakers should prioritize stability and economic growth by

Bonus Depreciation & Inflation | Permanent 100% Bonus Depreciation
October 27, 2022
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TweetShareSharePin0 Shares Starting next year, 100 percent bonus depreciation for short-lived investment—originally enacted in the 2017 Tax Cuts and Jobs Act (TCJA)—will begin to phase down through the end of 2026. Making 100 percent bonus depreciation permanent would boost economic growth and American incomes in any economic environment, but this policy change would be especially

US Competitiveness Projected to Worsen Amid Changing Tax Landscape
October 18, 2022
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TweetShareSharePin0 Shares Nearly five years ago, the Tax Cuts and Jobs Act (TCJA) brought dramatic changes to U.S. tax policy. The federal corporate tax rate fell from 35 percent to 21 percent and other reforms improved the tax treatment of business investment, lowered taxes for individuals and families, and introduced a new system for taxing

After the UK Super Deduction
September 21, 2022
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TweetShareSharePin0 Shares Note: This report was published in partnership with the Centre for Policy Studies, one of the oldest and most influential think tanks in Westminster. With a focus on taxation, economic growth, business, welfare, housing and green growth, its goal is to develop policies that widen enterprise, ownership and opportunity. Key Findings For many years, the UK has